| Workers check a pouch-type battery cell at LG Energy Solution's electric vehicle battery plant in Ochang. Courtesy of LG Energy Solution |
By Kim Bo-eun
The local KOSPI bourse is set to heat up with multiple weighty initial public offerings (IPOs) scheduled for 2022. More than a dozen companies worth over 1 trillion won plan to be listed.
LG Energy Solution (LGES) will be the first company to go public in late January. The battery maker's debut is expected to be the largest-value IPO on the KOSPI so far. The LG affiliate's market capitalization is set to amount to 60 to 70 trillion won ($50.47 billion to $58.88 billion), which would place it third or fourth on the KOSPI. Samsung Electronics, SK hynix and Naver are the top three companies in terms of market cap on the main bourse.
LGES, wholly owned by LG Chem, is in need of funds for overseas battery plants that will be built independently and in a joint venture with global automotive group, Stellantis. The company has moved quickly to set up production facilities as demand for electric vehicles grows rapidly.
Hyundai Engineering is set to list on the KOSPI next month. Its market cap is expected to reach over 6 trillion won, which places it among the top firms in the construction industry. The market cap of its parent company, Hyundai Engineering & Construction, is around 5 trillion won. Hyundai Oilbank is also preparing for a KOSPI debut. It requested a preliminary review for its listing from the stock market operator, the Korea Exchange, last month.
E-commerce companies are among other firms gearing up for IPOs.
SSG.com, the online mall unit of retail giant Shinsegae Group, is aiming for a listing this year, having selected a lead underwriter for its IPO. SSG.com's valuation is estimated at 10 trillion won.
Market Kurly, an early morning grocery delivery service, is also getting ready for its listing this year. The company is estimated to be worth 5 trillion won.
Both retailers are sustaining losses as they have invested heavily in retail infrastructure, such as logistics centers, and the IPOs will help them secure much-needed funds.
Kakao Group is preparing to list its entertainment affiliate following the IPOs of KakaoBank and KakaoPay last year.
SK Square's affiliate, local app market One Store, has also requested a preliminary review for its listing. It is aiming for an IPO within the first half of this year. In addition, CJ Group's beauty and health product retailer, CJ Olive Young, plans to go public this year.
A series of listings will continue this year, after multiple IPOs in 2021. Among the companies that made their stock market debuts last year are: SK Bioscience, SKIET, KakaoBank, Krafton, Hyundai Heavy Industries and KakaoPay.
"There are 13 companies with an estimated corporate value of over 1 trillion won that have been mentioned as new listings in 2022. This is greater than the 11 companies of 2021," Korea Investment & Securities analyst Lee Na-ye said.