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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] LG CNS, the IT affiliate of LG Group, has passed the IPO review process by the Korea Exchange.
According to the Korea Exchange on December 2, the Securities Market Division approved LG CNS’s preliminary review during a listing committee meeting. It has been 40 business days since LG CNS filed for the review on October 4.
The company aims to go public early next year. It plans to submit its securities filing to the Financial Services Commission early next month, followed by a demand forecast and subscription process in January, with the goal of completing the listing by early February. KB Securities, Bank of America (BoA), and Morgan Stanley are the lead underwriters, while Mirae Asset Securities, Daishin Securities, Shinhan Investment Corp., and JPMorgan are co-underwriters.
Founded in 1987, LG CNS is a systems integration (SI) company that provides software technology-based system construction, operation, and cloud services. Initially serving mostly group affiliates with SI and maintenance services, it expanded into digital transformation (DX) for the financial sector, cloud services, smart factories, and artificial intelligence (AI) since 2020.
Industry experts expect LG CNS’s performance to continue an upward trajectory, projecting a company valuation of 5-7 trillion won post-IPO. Last year, LG CNS achieved revenue of 5.6 trillion won and operating profit of 464 billion won, marking increases of 13% and 20.3%, respectively, compared to the previous year. Analysts expect the company’s post-listing market value to be between 6-7 trillion won.
In 2020, Macquarie Asset Management’s Private Equity Fund (Macquarie PE) acquired a 35% stake in LG CNS for about 1 trillion won, with a condition to go public within five years. The deadline for the IPO is in April 2025. As the second-largest shareholder, Macquarie PE is expected to sell some of its shares through this IPO.
Additionally, LG CNS’s credit rating outlook was upgraded. Korea Ratings raised the company's outlook from "AA- Stable" to "AA- Positive," the first upward revision in 15 years since 2009.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
