LG CNS begins taking orders for Korea’s biggest IPO since 2022

LG CNS, whose services include cloud and warehouse management, is accepting bids until Jan 15

LG Corp’s tech-services unit started taking orders for an initial public offering in Seoul that may raise as much as US$816 million, which would make it South Korea’s largest IPO in three years.

LG CNS, whose services include cloud and warehouse management, is accepting bids until Jan 15, according to terms of the deal seen by Bloomberg. The company and an entity owned by Macquarie Korea Asset Management are offering 19.4 million shares at 53,700 won to 61,900 won apiece.

As the first major IPO in the country since the martial-law episode in December, LG will also test appetite for the nation’s stocks after the sudden political manoeuvre rocked Korean markets. The benchmark Kospi fell 10 per cent last year.

The deal would also be Seoul’s biggest since battery-maker LG Energy Solution’s US$10 billion-plus share sale in January 2022. IPOs in Korea raised US$1.5 billion in 2024, more than the previous year but far below the record US$15 billion in 2021, according to data compiled by Bloomberg.

The outcome of the LG CNS IPO may have implications for online lender K Bank, which withdrew what was supposed to be a deal exceeding US$700 million last year due to concerns over high valuation, but is aiming to revive the process again in 2025.

LG CNS plans to use proceeds from the offering for facility upgrades, such as replacing equipment in its data centres. It also intends to spend the money on mergers and acquisitions of other tech-specialized companies and to repay outstanding bonds.

The company expects to price its shares Jan 17 and list Feb 4, according to the terms. Morgan Stanley, BofA Securities and KB Securities are the joint global coordinators. BLOOMBERG

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