LG Electronics is contemplating an initial public offering (IPO) for its Indian business, with plans to raise up to $1.5 billion.
To facilitate this, the company has appointed several major banks, including Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley.
These banks will act as arrangers for the potential offering, which could take place as early as next year.
According to sources familiar with the matter, LG aims to raise between $1 billion and $1.5 billion from the IPO, which could potentially value LG Electronics India Pvt Ltd. at approximately $13 billion.
Discussions are still ongoing, and the specifics of the offering, such as its size and timing, remain subject to change.
The sources, who requested anonymity due to the confidential nature of the information, indicated that LG may file a prospectus with India’s stock market regulator as soon as next month.
Additionally, the company might engage additional banks, including local ones, later in the process.
In the broader context, India has become a significant focus for global investors seeking to capitalize on its growth potential.
For instance, Hyundai Motor Co. is also planning to launch an IPO for its Indian unit this year, which could be among the largest listings ever in the country, as reported by Bloomberg News.
LG’s consideration of an IPO for its Indian unit is part of a larger strategy to achieve its goal of $75 billion in electronics revenue by 2030 and to rejuvenate its consumer electronics sector.
This was highlighted by LG’s Chief Executive Officer, William Cho, during a Bloomberg Television interview in August.