Paul Hastings and Kim & Chang are advising LG Energy Solutions, the world’s second-largest battery maker, in its $10.8 billion IPO on the Korea Exchange.
The deal, which has attracted bids worth around US$13 trillion, marks South Korea’s largest-ever IPO.
Spun off from LG Chem in 2020, LG Energy holds more than 20% of the global market share for batteries for electric vehicles. The company supplies major automakers including Tesla Inc, General Motors and Volkswagen AG.
The deal sets the tone for investors’ appetite for South Korean deals. According to the Korea Exchange, more than 20 companies listed on South Korea’s main stock exchange last year, raising about $14 billion. The previous record held dates back to 2010, when the board raised approximately US$7.8 billion during the year.
KB Securities Co and Morgan Stanley act as lead managers for the latest IPO. Daishin Securities, Shinhan Investment Corp, Goldman Sachs (Asia), Merrill Lynch International and Citigroup Global Market Korea Securities acted as co-managers. They are advised by Bae partners Kim & Lee Seoul Hee-Gang Shin, Seung Il Hong, Jeong-Hoon Lee and New York partner Sookyung Chung, and Simpson Thacher & Bartlee Hong Kong partner Jin Hyuk Park.
Kim & Chang’s advice to LG was led by Seoul-based lawyers Myoung Jae Chung and Hoonsup Shin. Last year, Kim & Chang also represented LG in the sale of its smartphone division.
Paul Hastings’ partner and head of his Seoul office, Dong Chul Kim, led the company’s advice to LG Energy on its listing. In 2012, Paul Hastings also acted for LG in obtaining the dismissal of claims in an antitrust action brought by a Washington state court, which alleged that LG Display and several other manufacturers conspired to fix the price of LCD panels. .
Over the past 12 months, Paul Hasting has advised several billion dollar deals in Korea. Company followed through on game developer Krafton Inc’s US$3.8 billion bid, Hyundai Heavy Industries’ US$923 million IPO, $2.2 billion debut of KakaoBank and the US$1.3 billion listing of KakaoBank subsidiary Kakaopay.