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LG’s IT Services Affiliate Slumps In Seoul Debut After $825 Million IPO

Feb 05, 2025 - forbes.com
LG CNS, the IT services arm of South Korea's LG Group, experienced a nearly 10% drop in its stock market debut in Seoul, closing with a market cap of 5.4 trillion won ($3.7 billion). The IPO was priced at 61,900 won per share, raising 1.2 trillion won ($825 million), marking the largest IPO in South Korea since LG Energy Solution's 2022 listing. Established in 1987 as a joint venture between LG and Electronic Data Systems, LG CNS specializes in AI, cloud, and IT systems integration. The company plans to use part of the IPO proceeds for acquisitions.

For the first three quarters of 2024, LG CNS reported revenues of 4 trillion won ($2.7 billion) and a net income of 233 billion won, with about half of its revenue from cloud and data services. Major clients include LG Electronics and LG Chem, each contributing 21% of 2023 revenues. LG Corp., the holding company for LG Group, is the largest shareholder with a 45% stake, while Koo Kwang-mo, LG Corp.'s chairman and CEO, holds a 1% stake.

Key takeaways:

  • LG CNS, an affiliate of LG Group, experienced a nearly 10% drop in its stock market debut in Seoul, ending with a market cap of 5.4 trillion won ($3.7 billion).
  • The company's IPO was priced at 61,900 won per share, raising 1.2 trillion won ($825 million), marking the largest IPO in South Korea since LG Energy Solution in 2022.
  • LG CNS plans to use part of the IPO proceeds for potential acquisitions, focusing on services related to AI, cloud, and IT systems integration and management.
  • For the first three quarters of 2024, LG CNS reported revenues of about 4 trillion won ($2.7 billion) and net income of 233 billion won, with significant contributions from cloud and data-related services.
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