LG Electronics is said to pause work on India unit’s IPO plans

LG Electronics is said to pause work on India unit’s IPO plans

LG Electronics Inc has paused work on the initial public offering of its Indian unit amid market
volatility, according to people familiar with the matter.

The South Korean company has told advisers it may postpone the India unit’s IPO, the people said, asking not to be identified because the deliberations are private. LG may decide to resume the share sale if market conditions improve, they said.

Considerations are ongoing and no final decision has been made, the people said.

An LG Electronics representative in Seoul said the IPO process is still on but the company can’t comment on the timing.

The IPO could have taken place as soon as May, Bloomberg News had reported.

LG’s India unit IPO might have got a lower valuation than previously expected, after a decline in the stock market earlier this year, people familiar with the matter have said. The valuation could have dipped to between $10.5 billion and $11.5 billion, versus earlier expectations for as much as $15 billion, the people have said.

The company had started roadshows to meet potential investors in the IPO earlier this year, people familiar with the matter said in February.