LG Energy Solution becomes second-largest market cap on KOSPI

Korea Exchange (KRX) CEO Sohn Byung-doo, fifth from left, and LG Energy Solution (LGES) CEO Kwon Young-soo, fourth from right, applaud along with LGES key officials and related brokerage industry leaders at the lobby of KRX's Seoul office building on Yeouido, marking the KOSPI debut of LGES stocks on Thursday morning. Yonhap

By Anna J. Park

LG Energy Solution (LGES) made its debut on the country's main benchmark KOSPI on Thursday, becoming the second-largest market cap company listed on the KOSPI, following only Samsung Electronics. However, it then plunged from the initial price.

The global secondary battery manufacturer's stock started off trading at the initial price of 597,000 won ($496) at the beginning of Thursday's trading session, which is nearly double the stock's IPO subscription price of 300,000 won. However, the much-anticipated stock failed to increase further from its starting price; rather, the stock price fell by 15.41 percent from its starting price, closing at 505,000 won.

Since kicking off at 597,000 won at 9 a.m., the price slipped to Thursday's lowest level of 464,000 won at 10:54 a.m., and then rose again to the day's highest price of 543,000 won at 2:33 p.m. But the stock price has continued to fall since then, closing at 505,000 won.

The firm's market cap now stands at around 120 trillion won, taking the second spot on the KOSPI in terms of market cap size. In turn, SK hynix was pushed down to third place, with its long-held second-place market cap ranking being snatched away by the battery company. The preferred stock of Samsung Electronics, Naver and Samsung Biologics followed on the list, filling in the fourth to sixth positions.

With the IPO, LGES has raised capital of more than 10 trillion won, which will be spent on expanding global production facilities as well as on R&D investment.

“Since the company set foot in the secondary battery market in 1992 as the frontrunner in the industry in Korea, it is finally bearing fruit through its IPO, after 30 years of efforts,” LGES CEO Kwon said during an IPO ceremony held at the lobby of KRX's Seoul Building in Yeouido, Seoul, Thursday morning. “The company will consider it a new starting point for another 100 years moving forward,” he highlighted.

The company's IPO set various all-time high records in Korea's stock market history. The subscription competition rate among institutional investors posted a 2,023:1, which is highest ever. The subscription deposit of 114 trillion won for retail investors' stock allotments was also a record high in the country's IPO history.