LG CNS Announces Public Offering Plans
South Korean IT solutions provider LG CNS has officially declared its intention to debut on the main bourse Kospi in February. The company has submitted a prospectus to the financial authorities to kickstart the public offering process. LG CNS aims to issue 19.38 million shares in the upcoming IPO, with a target offering price set between 53,700 won and 61,900 won ($37.88-$43.44) per share. The estimated market capitalization is expected to reach up to 6 trillion won.
Timeline and Lead Underwriters
LG CNS will conduct a book-building process for institutional investors from Jan. 9 to 15. General subscriptions for public offering shares will be available for two days until Jan. 22. The lead underwriters for the IPO are KB Securities, Bank of America, and Morgan Stanley.
Utilizing Funds for Future Growth
The IT solutions provider plans to utilize the funds from the IPO to reinforce its core capabilities and invest in future growth areas such as artificial intelligence, cloud, and smart factories. LG CNS CEO Hyun Shin-gyoon expressed the company’s goal to evolve into a global DX specialized company by leveraging its AI and cloud technologies.
Positive Outlook and Performance
Market experts predict a smooth IPO process for LG CNS based on its strong performance. The company reported impressive figures for the first three quarters of the year, with cumulative sales reaching 3.96 trillion won and operating profit at 312.8 billion won. LG CNS is on track to achieve a new record for annual revenue for the sixth consecutive year, with revenue hitting 5.61 trillion won in 2023, a 13 percent increase from the previous year.
LG CNS’ strategic shift towards AI and cloud-based solutions has proven successful, leading to a significant increase in non-affiliate revenue. The company’s performance growth has been steady, with operating profit growing by 20 percent year-on-year. Analysts, such as Kim Jang-won from BNK Securities, highlight LG CNS’ strong business structure and growth potential, emphasizing the company’s stability and competitiveness in the industry.
LG Corp. is the largest shareholder of LG CNS, holding a 49.95 percent stake. LG Group Chairman Koo Kwang-mo also has a personal stake in the company, owning about 1.12 percent. This unique ownership structure adds a personal touch to LG CNS’ journey towards its IPO debut on the Kospi, showcasing a blend of corporate excellence and individual commitment to success.
