LG Electronics Inc. is reportedly considering a valuation of up to $15 billion for its Indian subsidiary, LG Electronics India Pvt., in a planned initial public offering (IPO) on the Mumbai stock exchange next year. This potential increase from the initially reported $13 billion valuation comes after positive feedback from preliminary discussions with analysts and investors.
LG is expected to formally launch the IPO roadshow within the next two months, aiming for a listing in the first half of 2025. While the company has been gauging investor interest, the final valuation could be slightly lower depending on market demand. The IPO process began earlier this month with the filing of a draft red herring prospectus with Indian regulators. The prospectus outlines plans to sell up to 101.82 million existing shares.
Leading global financial institutions, including Morgan Stanley, JPMorgan Chase & Co., Axis Capital Ltd., Bank of America Corp., and Citigroup Inc., have been appointed to manage the IPO. The offering could potentially raise between $1 billion and $1.5 billion, according to sources familiar with the matter.
This ambitious IPO comes amidst a challenging year for LG Electronics, with its shares declining approximately 13% in Seoul, resulting in a current market capitalization of $10 billion. However, the Indian market has proven resilient, attracting significant global investment.
India has witnessed a surge in IPO activity in 2024, with nearly $18 billion raised year-to-date. This includes several high-profile listings, such as the record-breaking $3.3 billion IPO by Hyundai Motor Co.’s Indian arm in October. Other notable IPOs exceeding $1 billion include food delivery platform Swiggy Ltd. and renewable energy company NTPC Green Energy Ltd. This positive market momentum could bolster LG Electronics India’s IPO and support its targeted valuation. The final valuation will depend on a variety of factors, including investor appetite, market conditions, and the overall performance of the Indian economy. The successful listing of LG Electronics India would represent a significant milestone for both the company and the Indian capital market.
