Strong Presence in Vietnam
At a press conference held at the Grand Plaza Hanoi Hotel in Vietnam on August 25, Myung Roe-hyun, CEO of LS Cable & System (LS C&S) announced his plans to promote LS C&S Asia to become a leading general wire company in the South East Asian region.
LS C&S Asia, a holding company of the two Vietnamese corporations, LS-VINA and LSCV, was established in South Korea in May last year to be listed in Korean stock market. The Public Offering Price (POP) is 10,000 won to 11,500 won, and the amount of ordinary shares offered in the public offering is 12,650,140 shares. The company is to be listed on September 22, through the processes of Book Building from September 5 to 6, and the ordinary public offering from the 8th to the 9th in the same month. This is going to become the first case that an international corporation of a domestic enterprise is listed in Korean market.
“The domestic investors who are willing to put their money into the fast-growing Vietnamese enterprises must encounter the accounting transparency and the difficult local stock transaction and (uncertain),” said CEO Myung Roe-hyun, adding, “LS C&S Asia has secured the accounting transparency by adopting an international accounting rule and the Enterprise Resource Planning (ERP) system, and it also made the stock transaction easier by listing the Vietnamese companies in Korean market.”
LS C&S established LS-VINA Cable & System in Northern Hai Phong city, Vietnam in 1996 and started producing power cables. The company has been seeing a rapid growth simultaneously with the economic growth of Vietnam. In 2006, the company established another subsidiary, LS Cable & System Vietnam (LSCV) in Southern Ho Chi Minh city, started producing telecom cable and the likes, and became a general cable company producing both power and telecom cables.
The sales of the company, which started with 1.9 billion won in 1996, the first year to advance into Vietnam, grew 15 times in 20 years to reach 490 billion won in 2015 when combining the two Vietnamese units, and the two companies have 30% share of the local cable market.
LG C&S initially built the local factories just for the Vietnamese market, but expanded the business areas to North and South America as well as Asia-Pacific countries including Singapore, Australia. Subsequently, it became the No.1 cable export company in Vietnam, acknowledged by the Vietnamese government as an exemplary case of a foreign invested company, receiving an exporter of merit award and a labor medal.