LG CNS’ W6tr listing in February to offer gauge for investor sentiment

Though concerns of undervaluation linger with the slow stock market, big-name deals have lined up for the initial public offering market next year, including those of conglomerate affiliates such as LG CNS and Lotte Global Logis, as well as aspiring game-changers such as K bank and Bithumb.
The local IPO market remained sluggish in 2024 due to deteriorating investor sentiment. A total of 3.89 trillion won ($2.73 billion) was raised in the local stock market through IPOs this year -- just one-fifth of 19.7 trillion won scored in 2021. Of the 74 companies that completed their market debuts, 52, or over 70 percent, saw their share prices fall below the offering price.
“The volatility in the domestic IPO market will escalate for a while,” said analyst Lee Chang-hee from Samsung Securities. “For successful IPO deals, the stock market has to pick up pace first. Uncertainties surrounding the market environment have to be cleared out.”
Despite clouds looming over the market, IPO hopefuls are lining up to go public next year.
"The market condition is not favorable, but we cannot wait forever for the right timing," said an official of one of the companies bracing for a market debut next year. "We will continue to communicate with the market to reassure investors."
LG CNS, an IT solutions provider under the country’s major conglomerate LG Group, plans to make its initial public offering on the nation’s main bourse Kospi in February. It has submitted a securities registration on Dec. 5.
The company plans to issue 19.38 million shares in the upcoming IPO. The target offering price is between 53,700 won and 61,900 won a share, with the estimated market capitalization expected at up to 6 trillion won.
The market debut of Lotte Global Logis is another key event set to happen next year. Having kicked off the IPO process in October, Lotte Global Logis has to make a market debut by April to keep its end of the bargain made with a financial investor.
The Lotte unit is expected to weigh in at over 1 trillion won. If it fails to make the stock market debut in the given timeline, financial investor LLH can exercise its put option, which mandates the group’s holding company Lotte Corp. and affiliate Hotel Lotte buy back its shares. The affiliates must make up for the differential if the offered price does not meet expectations as well.
Considering Lotte Group has been under financial strain, striving to secure liquidity through various measures, Lotte Global Logis’ market debut will be a key moment for the group.
Internet-only lender K bank is also eyeing to make a market debut in February. It was originally scheduled to go public on Oct. 30, but the lender pushed back the date to early next year due on concerns over a low valuation.
In October, the bank planned to float 8.2 million shares through the IPO, with a target price range set between 9,500 won and 12,000 won per share. The lender, expected to weigh around 5 trillion won, was to raise 1 trillion won through the offering.
Another IPO hopeful is Bithumb, the operator of the second-largest crypto exchange under the same name. Though Dunamu, the operator of the country’s largest crypto exchange Upbit, has remained silent on any market debut plans, Bithumb announced it will go public in the second half of next year. In recent months, the company has been proactively rolling out marketing events to expand its market share before the IPO.