SEOUL, June 8 (Yonhap) — South Korean battery maker LG Energy Solution Ltd. said Tuesday it applied for preliminary approval to list its shares on the country’s main stock market.
LG Energy, the wholly owned subsidiary of LG Chem Ltd., said in a regulatory filing that it submitted the application to bourse operator Korea Exchange, as it seeks an initial public offering (IPO) within this year.
The company plans to use IPO proceeds to expand a facility investment to meet growing demand for batteries for electric vehicles.
LG Chem split off the battery unit in early December last year to grab a bigger chunk of the rising EV battery market under tightening environmental regulations.
LG Energy’s IPO plan has drawn keen attention as the company is a major supplier of batteries for nearly all major global carmakers, including Tesla, General Motors, Ford, Renault, Volvo and Volkswagen, as well as South Korea’s two largest automakers — Hyundai Motor and Kia Corp.