LG Electronics taps top banks for $1.5 billion IPO of Indian unit: Report

This IPO is part of LG’s strategy to reach a target of $75 billion in electronics revenue by 2030.

South Korea’s LG Electronics Inc. is likely to gear up for a significant initial public offering (IPO) of its Indian operations, potentially raising up to $1.5 billion, sources familiar with the matter told Bloomberg. The move is part of LG’s broader strategy to boost its electronics revenue and invigorate its consumer electronics segment.

Bloomberg reports that LG has selected a consortium of major banks to manage the IPO, including Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley. The IPO could take place as early as next year, with LG aiming to raise between $1 billion and $1.5 billion, which would value LG Electronics India Pvt Ltd. at approximately $13 billion.

Moneycontrol reported on May 28 that the South Korean electronics giant has hired advisors to evaluate a potential initial public offering of its unit LG Electronics India Pvt Ltd on local bourses.

While deliberations are still in progress, the final details regarding the size and timing of the offering could change. LG is expected to file a prospectus with India’s stock market regulator as early as next month, the Bloomberg report adds. Additional banks, including local institutions, may be added to the underwriting team in the future.

Representatives from LG, Bank of America, Citigroup, and JPMorgan have declined to comment on Bloomberg's queries, and Morgan Stanley has not responded to requests outside regular business hours. Moneycontrol could not independently verify the report.

India’s burgeoning market has attracted significant attention from global investors. Hyundai Motor Co. is also preparing to list shares in its Indian unit this year, which could become one of the largest listings in the country’s history.

This IPO is part of LG’s strategy to reach a target of $75 billion in electronics revenue by 2030.