이 기사는 2021년 12월 09일 08:06 thebell 에 표출된 기사입니다.

South Korea’s LG Energy Solution (LGES) is expected to have about 14% of the total shares outstanding available for trading after its initial public offering (IPO), lower than other large IPO deals of this year, which is likely to push up its stock price after the stock market debut.

According to the company’s registration statement on Tuesday, 34 million shares will be available for trading after its market debut, which account for 14.5% of the total shares outstanding of 234 million. This is the lowest among multi-trillion won IPO deals that have been carried out so far this year, excluding the portion of institutional investors’ mandatory lock-up commitments.

In Krafton’s market debut, 41.5% of the total shares outstanding were available for trading, followed by Kakao Pay with 38.9%, Kakao Bank with 27%, SK Bioscience with 25.6%, SK IE Technology with 24%, and Hyundai Heavy Industries with 16.2%.

The number of shares available for trading is low for LGES as the company is currently wholly owned by LG Chem. LG Chem’s shareholding in the battery maker will be lowered to 81.84% after the listing, with its shares locked up from sales for six months upon the IPO.

LGES’ employee stock ownership plan, which will have a 3.63% stake after the listing, is also not allowed to sell its shares for a year. The remaining 14.5% stake will be available for public subscription.

Institutional investors, attracted to LGES’ IPO price, are expected to promise not to sell their allocated holdings for 15 days to six months, choosing extra IPO shares over short-term exit opportunities.

The battery maker’s market capitalization is expected to reach 60.14 trillion won-70.2 trillion won based on its IPO price range. Some analysts expect LGES’ share price to start at double its IPO price and surge to the daily limit of 30% on the day of its market debut as its market capitalization is only a quarter of its rival Contemporary Amperex Technology (CATL)’s 270 trillion won.

In Hyundai Heavy Industries’ IPO, the portion of the shares available for trading sharply reduced from initial 16.2% to 9.5% due to institutional investors’ lock-up commitments. The portion of LGES shares available for trading is also likely to drop to a single digit level.

On March 18, SK Bioscience, which had 11.5% of the total shares outstanding available for trading, opened at more than twice the IPO price of 65,000 won, then soared to hit the daily limit, closing the trading day at 169,000 won apiece.

Hyundai Heavy Industries, which had 9.5% of the total shares outstanding available for trading, opened at 111,000 won on September 17, which is 85% higher than the IPO price of 60,000 won, and ended the day at 111,500 won per share.

In contrast, Krafton, which had final 36.2% of the total shares outstanding available for trading, opened at 10% lower than its IPO price of 498,000 won, and ended the day at 454,000 won apiece on August 10. (Reporting by Kyung-ju Lee)