South Korea’s LG Electronics Inc. is preparing for an initial public offering (IPO) of its Indian subsidiary, aiming to raise up to $1.5 billion, according to sources familiar with the matter. The company has selected major banks, including Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., and Morgan Stanley, to lead the offering, which could take place as early as next year, the sources said.
The IPO is expected to raise between $1 billion and $1.5 billion, potentially giving LG Electronics India Pvt Ltd. a valuation of around $13 billion. While discussions are still in progress, and specific details such as the size and timing of the listing may change, the company may submit its prospectus to India’s stock market regulator as early as next month.
More banks, including local institutions, may be added to the deal later, the sources noted. Neither LG nor the selected banks have commented on the matter. India has become a popular destination for global investors, looking to capitalize on the country’s growth opportunities.
Hyundai Motor Co. is also preparing for a major listing in India, which could be one of the largest in the country’s history, according to Bloomberg News. The potential IPO for LG’s Indian unit is part of the company’s broader strategy to reach $75 billion in electronics revenue by 2030 and to strengthen its consumer electronics business. This was outlined by CEO William Cho in an interview with Bloomberg Television in August.
