Korea's largest IPO! "Ning Wang" strongest rival LG Energy listed shares rose 99%

【CNMO News】On January 27, South Korean battery manufacturer LG Energy, known as the largest IPO (initial public offering) in South Korean history, was officially listed on the South Korean Exchange, and the company's stock price soared all the way to 597,000 won /share after listing, an increase of 99% from the opening price of 304,800 won/share.

LG Energy

As the world's second largest power battery manufacturer after the Ningde era, LG Energy has won the favor of many investors since the IPO was announced. In previous IPOs, LG Energy raised 12.75 trillion won ($10.7 billion) in funding, and institutional investors oversubscribed more than 1,500 times for LG New Energy. As the world's second-largest public company after Rivian in 2021, it raised about 2.5 times the size of Samsung Life Insurance Company, the previous Korean market IPO record holder.

The reason why investors are so fond of LG Energy is mainly because everyone is very optimistic about the company's prospects. In the view of many professional analysts, LG Energy is in an industry-leading position in battery technology, but its market share is not lower than that of the Ningde era. According to the global power battery market share in the first 11 months of 2021 released by the statistical agency, CATL ranked first with a market share of 31.8%, while LG Energy ranked second with 20%, although the two have an 11% gap, but with the gradual popularization of new energy vehicles around the world, the future still has very large development prospects in the field of power batteries.

However, some analysts have warned about the market's high expectations for LG Energy, although the company does have good development prospects, but the company is still in a loss-making turnaround in 2019 and 2020, and the profit margin in 2021 is much lower than that of the Ningde era. In addition, the Ningde era has advantages in labor costs, raw material access and government policy support, so it is still difficult for LG Energy to challenge the hegemony of the Ningde era, so it is also recommended that investors should maintain a cautious and calm attitude towards LG Energy.