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Photo Credit: LS Cable & System |
[Alpha Biz= Kim Jisun] LS Group’s holding company, LS Corp. (CEO Myung Roh-Hyun), announced on Sunday that its U.S. subsidiary, Essex Solutions, has successfully raised $200 million (approximately KRW 290 billion) in pre-IPO funding.
The investment was secured through a third-party allocation of newly issued shares, with the Mirae Asset-KCGI consortium acquiring approximately a 20% stake in Essex Solutions. This implies a pre-IPO valuation of $1 billion (around KRW 1.45 trillion) for the company. The process, directly overseen by LS, attracted bids from major investors, including Bain Capital, Goldman Sachs, and IMM.
Essex Solutions is the world’s leading manufacturer of magnet wire, insulated copper wire used in electronic devices. Its core products include specialty magnet wires for electric and hybrid vehicles and high-capacity transformers. The company aims to capture a 70% market share for electric vehicle magnet wire in North America and over 50% in Europe within the next five years.
LS Group plans to finalize underwriter selection by early 2024 and pursue a full-scale listing by 2025. While initially targeting a listing on the KOSPI, the company is now also considering Nasdaq due to strong interest and support from U.S.-based investment banks.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
