LS said on the 15th that when it proceeds with an initial public offering (IPO) of its U.S. great-grandchild company Essex Solutions, it is consulting with relevant ministries on a plan to allocate shares identical to the public offering shares exclusively to LS Corp. shareholders, in addition to the general public subscription.
In this case, LS Corp. shareholders would have a chance to secure Essex Solutions offering shares even without taking part in the general public subscription. Under existing IPOs, shareholders of a parent company could only participate through the general public subscription even if a subsidiary or great-grandchild company listed, so the parent company shareholders' interests and opportunities were relatively limited.
LS is preparing related systems by forming a task force (TF) with the lead underwriters Mirae Asset Securities, Korea Investment & Securities Co., Samsung Securities, and NH Investment & Securities, while holding consultations with relevant agencies and the competent ministry. In addition, it will hold a "second corporate briefing" this month to explain concrete plans and is also set to announce additional shareholder return measures such as dividends and a value-up policy.
Essex Solutions is LS's great-grandchild company that manufactures specialty magnet wire, an essential material for motors for electric vehicles and transformers. LS plans to raise about 500 billion won through the Essex Solutions IPO and carry out facility investments in the United States to respond to a super boom in power. LS expects that if the facility investments are completed as planned, Essex Solutions' corporate value will more than triple entering 2030.
An LS official said, "During the process of subsidiary listings, even if a subsidiary's share price rose, parent company shareholders had limited tangible options," and added, "The plan LS is pursuing this time could help enhance shareholder value for both LS and Essex Solutions."