LG Electronics to push ahead with IPO of Indian subsidiary, valuing Indian market as growth market - South Korea

LG Electronics announced that it has submitted documents to the Securities and Exchange Board of India for review regarding the initial public offering (IPO) of its Indian subsidiary. This marks the first time that the company has filed a formal IPO application with the Securities and Exchange Board of India.
The company plans to sell 15% of its shares in its Indian subsidiary. The amount has not yet been decided. The Indian market, with a population of about 1.4 billion, is seeing a growing middle class, and is seeing a rise in the number of high-end smartphones and home appliances.
Demand is growing rapidly. Most of the customers are in their 20s and 30s, and as the penetration rate of home appliances is still low, this is expected to be a growing market. According to the Korea International Trade Association, the penetration rate of home appliances in India is 1.4% for refrigerators.
38% of the total is for automobiles, 17% for washing machines, and 8% for air conditioners. Furthermore, India can be used as an export base for the Middle East and Africa, and is less affected by the trade friction between the United States and China.
The IPO will be conducted as a tender offer to sell 15% of the company's shares without issuing new shares. Bloomberg reported that the Indian subsidiary of LG Electronics is valued at 13 billion yen.
The company valued the company at 1.2 billion U.S. dollars (USD, approximately 1.9553 trillion yen) and expects to raise up to 1.5 billion dollars (approximately 225.6165 billion yen) through the IPO.
An industry source said, "In the case of LG Electronics, its Indian subsidiary will be the largest among its subsidiaries in the Asia-Pacific region.
"The value of the market is high, and it is a market worth investing in for our company."