À̹ÌÁö È®´ë South Korea¡¯s LG Chem Ltd. won¡¯t be able to list the separated battery-making unit within the first year and will likely offer 20 to 30 percent in initial offering when it goes public in early 2022 to hold onto a controlling stake.
¡°Even if we immediately go to work (after the standalone battery unit is launched on Dec. 1), it would take at least a year to ready an IPO,¡± said Cha Dong-seok Friday, chief financial officer of LG Chem in a conference call hurriedly arranged on the following day of the announcement of the spinoff plan that upset investors who invested heavily in the company this year on burgeoning battery outlook.
¡°IPO customarily offers 20 to 30 percent of available shares. LG Chem will maintain the absolute majority stake after the IPO,¡± he said.
He appeased investors¡¯ jitters about dilution in their share-holding, maintaining the spinoff can add upside to the stock outlook.
LG Chem shares closed 3.26 percent higher at 666,000 won ($573.99) on Friday after losing 6.11 percent a day earlier on massive sell-offs by retail investors who are concerned about share dilution.
¡°With the demerger, LG Chem will be able to focus its investment and management capability on traditional chemicals, new materials and bio products businesses to prove its true corporate value,¡± said Cha.
¡°If necessary, the company will be aggressive in seeking M&A opportunities and partnerships with other companies to expand the businesses.¡±
By Lee Ha-yeon
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]