LG Electronics taps leading banks for potential $1.5B Indian IPO
LG Electronics, a leading South Korean company, is preparing for the initial public offering (IPO) of its Indian subsidiary. The potential IPO could generate up to $1.5 billion. According to Bloomberg, LG has now enlisted prominent banks such as Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley to manage this process.
Indian subsidiary could be valued at $13 billion
The share sale from the IPO is expected to raise between $1 billion and $1.5 billion, potentially valuing LG Electronics India Pvt Ltd. at around $13 billion. However, discussions are still underway and specifics regarding the offering's size and schedule may change. The company plans to submit a prospectus with India's stock market regulator as early as next month. LG is considering involving additional banks, possibly local ones, in the IPO process at a later stage.
LG's IPO aligns with India's investment potential
India has emerged as a hub for investment opportunities, attracting global investors eager to capitalize on the country's growth potential. This development comes as Hyundai Motor Co. also plans to sell shares in its local Indian unit this year, potentially marking one of the largest-ever listings in India. LG's potential IPO is part of a broader strategy by the company, as it aims to achieve $75 billion in electronics revenue by 2030 and rejuvenate its consumer electronics business.
