LS Group's subsidiary, Essex Solutions, and KOC Electric are accelerating their initial public offering (IPO) efforts. Targeting listings on the Korea Exchange (KOSPI) and the KOSDAQ, it has been recently confirmed that they completed the selection of underwriters.
According to the investment banking (IB) industry on the 10th, Essex Solutions recently selected Mirae Asset Securities and Korea Investment & Securities as the lead underwriters for the listing, while KOC Electric chose NH Investment & Securities and Shinhan Investment Corporation as lead underwriters.
Essex Solutions, a successor of Essex Wire Corporation established in 1930, is the leading player in the winding market, with bases in North America and Europe. LS Group acquired Essex for approximately 1 trillion won in 2008.
Earlier this year, the company sought pre-IPO funding, raising about 295 billion won from Mirae Asset Global Investments and a consortium led by KCGI. Following that, they intensified the listing process by issuing a request for proposal (RFP) for underwriting on the 12th of last month.
KOC Electric, a subsidiary of LS ELECTRIC, is a specialized manufacturer of high-voltage transformers established in 1995. LS ELECTRIC acquired a 51% equity stake in KOC Electric from LB Private Equity for 59.2 billion won last May.
LS Group plans to list Essex Solutions on the Korea Exchange and KOC Electric on the KOSDAQ. The key issue is to overcome the controversy surrounding dual listings (simultaneous listings of the parent company and subsidiary), as LS Group is also pushing for the listings of LS M&M and LS EV Korea.
Earlier on the 6th, LS Group affiliated companies, including LS, LS Eco Energy, and LS Networks, faced concerns over dual listings and closed down across the board. This came after Gu Ja-eun, the chairman of LS Group, noted, 'If you think dual listing is a problem, you don’t have to buy the stock.'
Chairman Gu also remarked, 'Small companies have no choice but to continually invest to grow, and to make investments, they need to secure funds, but the methods are limited.'