LGCLF - LG Energy Solutions to go public at valuation surpassing parent LG Chem

LG Energy Solutions ("LGES") targets raising ~12t KRW in IPO (~11b USD) in what would be Korea's largest IPO, at a total valuation of ~70t KRW The new entity is being carved out of LG Chem (OTCPK:LGCLF), the current 100% owner; LG Chem is a chemicals and materials company founded in 1947 LG Chem carries a market capitalization of 50t KRW; by listing LGES at a 70t KRW value, it suggests the market is ascribing little-or-no value to the legacy chemicals and materials businesses at LG Chem LG Energy Solutions generated 11.2t KRW in revenue during the first three quarters of 2021 (~15t KRW annualized) implying a valuation at 4.6x sales (LG Chem currently trades at ~1.5x LTM sales) The IPO has hit bumps along the way, as the process was pulled in June of this year following a battery-related recall with GM's Chevy Bolt, a car running on an LGES

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LG Energy Solutions to go public at valuation surpassing parent LG Chem