LG Group's information technology (IT) corporations LG CNS has recovered its initial public offering price for the first time since the listing day.
LG CNS shares were traded at 62,000 won on the KOSPI market at 11:18 a.m. on the 13th. The stock price rose 5.08% (3,000 won) compared to the previous day. It climbed to 62,600 won during the session, marking a new high since the listing. This is the first time that the price of LG CNS shares exceeded the initial public offering price of 61,900 won after the listing.
LG CNS was regarded as a major player in the public offering market this year, garnering market expectations. However, on the listing day, the stock price fell more than 9% below the initial public offering price on Feb. 5. Accusations of overvaluation followed, and the stock price dropped to 46,500 won within a month of the listing.
After that, the stock price, which had been fluctuating around the 50,000 won range, jumped 11.95% (6,300 won) the previous day, gaining momentum. The new government's push for a joint public-private investment of 100 trillion won, the establishment of a national GPU (graphics processing unit) cluster, and the 'Everyone's AI Project' contributed greatly to the increased expectations.
Financial soundness has also been reevaluated. Korea Ratings raised LG CNS's credit rating to 'AA Stable' on the 4th. Previously, Korea Credit Ratings and NICE Investors Service also upgraded their ratings to the same level. Credit rating agencies cited LG CNS's order competitiveness, profitability, and improvements in financial structure as reasons.
According to the financial information provider FnGuide, securities firms' average target price for LG CNS is 71,300 won. Earlier, securities firms adjusted their target prices upward after LG CNS announced first-quarter results (January to March) that surpassed market expectations.