Encouraged by Successful IPO
LG Energy Solution will increase its investment in North America and Europe as it is expected to raise 12.75 trillion won through an initial public offering.
According to the company’s revised investment guide book, it has earmarked 4,817.8 billion won for investment in its North American subsidiaries, up by about 800 billion won from the previous 4,025.2 billion won. The increase is designed to expand its production capacity in North America.
Likewise, the company expanded planned investment in European subsidiaries by about 660 billion won from 1,178.7 billion won to 1,837.6 billion won.
The amount of investment in Chinese subsidiaries remained unchanged at 1,219.6 billion.
As a result, the company's planned investment to acquire securities of other corporations increased by more than 1,400 billion won from 6,423.6 billion won to 7,875.1 billion won.
The company adjusted its investment plan, which was initially drawn up conservatively, in accordance with the IPO price. LG Energy Solution’s total public offering amount was set at 12.75 trillion won.
After the IPO, LG Energy Solution is expected to compete more fiercely with CATL of China in the global electric vehicle battery market. CATL posted a global market share of about 29.0 percent during the January-November period of 2021 based on its dominance of the Chinese market. LG Energy Solution ranked first in the non-Chinese market with a 36.2 percent market share from January to October 2021. Yet, CATL has already begun to turn its eyes to overseas markets and is rapidly ramping up its market share based on its strong price competitiveness.
In August 2021, CATL laid out a plan to increase capital by 58.2 billion yuan (about 10.9 trillion won), the largest ever for a Chinese private company. Then, the scale was reduced to 45 billion yuan (about 8.4 trillion won) in November and the capital increase is currently underway.