This year, LG Group's system integration (SI) company LG CNS has been identified as the first major player in the initial public offering (IPO) market, with more than 21 trillion won in subscriptions collected.

Hyun Sin-kyun, president of LG CNS, is presenting at a press conference for the initial public offering (IPO) held at the Conrad Hotel in Yeouido, Seoul, on Nov. 9. /Courtesy of LG CNS

According to the investment banking (IB) industry on the 22nd, LG CNS attracted about 21.1441 trillion won in subscription deposits over the two-day public offering for general investors held from the 21st to the 22nd. Total subscriptions amounted to 683,171,110 shares for the 5,557,414 shares allocated to general investors, resulting in a competitive ratio of 122.9 to 1. This subscription was conducted through the branches of KB Securities, Mirae Asset Securities, Shinhan Investment & Securities, Daishin Securities, NH Investment & Securities, and Hana Securities.

Earlier, from the 9th to the 15th, LG CNS succeeded in its demand forecasting aimed at institutional investors. A total of 2,059 domestic and foreign institutions participated, raising approximately 76 trillion won. These institutions recorded a competitive ratio of 114 to 1.

After discussions with lead underwriters KB Securities, Bank of America (BoA), and Morgan Stanley, LG CNS set the offering price at the upper limit of the band (57,300 won to 61,900 won) at 61,900 won. Accordingly, the market capitalization after listing is expected to be 59.972 trillion won based on the offering price, making it the fifth-largest amount among LG Group affiliates, following LG Energy Solution, LG Chem, and LG Electronics.

LG CNS is scheduled to make its debut in the securities market on the 5th of next month, following payment on the 24th. Through this listing, LG CNS plans to focus on investing in the development of future growth engines, including research and development in AI, cloud, and digital transformation (DX) technologies.

Established in 1987 in partnership with EDS in the U.S., LG CNS is the IT affiliate of LG Group, engaged in IT services and the digital transformation (DX) sector. Its revenue for 2023 is 5.6053 trillion won, with cumulative revenue in the third quarter last year increasing by 7.0% year-on-year to 3.9584 trillion won.

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