LG Electronics said to eye up to $15 billion valuation for India IPO

LG filed a draft red herring prospectus with Indian regulators earlier this month, detailing plans to sell as many as 101.82 million shares, none of which will be new. Morgan Stanley, JPMorgan Chase & Co., Axis Capital Ltd., Bank of America Corp. and Citigroup Inc. will manage the IPO.

LG Electronics Inc. is considering increasing the valuation of its Indian unit to as much as $15 billion in a planned listing in Mumbai next year after initial feedback from analysts and investors, according people familiar with the matter.

The South Korean company is planning to start a formal roadshow for LG Electronics India Pvt.’s IPO within the next two months and is targeting a listing in the first half of 2025, the people said, asking not to be identified because the information is private. The company had earlier eyed a valuation of around $13 billion, Bloomberg News reported in September.

LG has been sounding out preliminary interest from potential investors, the people said. Deliberations are ongoing and details could change, the people said. LG may ultimately seek a slightly lower valuation for the business based on final demand, one of the people said.

A representative for LG declined to comment.

LG filed a draft red herring prospectus with Indian regulators earlier this month, detailing plans to sell as many as 101.82 million shares, none of which will be new. Morgan Stanley, JPMorgan Chase & Co., Axis Capital Ltd., Bank of America Corp. and Citigroup Inc. will manage the IPO.

The company could seek to raise $1 billion to $1.5 billion in the IPO, people familiar with the matter have said.

LG’s shares have dropped about 13% this year in Seoul, leaving the company with a market value of $10 billion.

India has had a strong year for share sales amid growing interest from global investors. Nearly $18 billion has been raised via IPOs this year, according to data compiled by Bloomberg. Those listings include a record $3.3 billion IPO by carmaker Hyundai Motor Co.’s Indian unit in October and two more that topped $1 billion, by food delivery firm Swiggy Ltd. and NTPC Green Energy Ltd.

On December 6, Moneycontrol was the first to report that LG had filed draft papers for a mega $1.8 billion (Rs 15,237 crore), which would send it straight to the top 5 club of India's biggest IPO's which includes Hyundai Motor India, LIC, Paytm and Coal India.