LG CNS, the IT services arm of South Korean conglomerate LG Group, saw its stock price drop nearly 10% on its first day of trading in Seoul. Despite the initial dip, the company's IPO raised a substantial 1.2 trillion won ($825 million), making it the largest in South Korea since LG Energy Solution's record-breaking offering in 2022. LG CNS plans to use a portion of the funds for potential acquisitions as it expands its presence in the AI, cloud, and IT services markets.
LG CNS , the information technology services affiliate of South Korea n billionaire's LG Group, experienced a slump of nearly 10% on its stock market debut in Seoul on Wednesday. The company concluded the day with a market capitalization of 5.4 trillion won (approximately $3.7 billion). Its initial public offering was priced at 61,900 won per share, reaching the highest point of its marketed range. This listing generated 1.
2 trillion won (roughly $825 million), making it the largest IPO in South Korea since LG Energy Solution, LG Group's electric vehicle battery arm, raised 12.8 trillion won in early 2022 – the country's biggest ever IPO. LG CNS intends to utilize a portion of the IPO proceeds for potential acquisitions.Based in Seoul, LG CNS was established in 1987 as a joint venture between LG and Electronic Data Systems (EDS), which was at the time a subsidiary of General Motors. (EDS was subsequently acquired by HP in 2008 for $13.9 billion.) The company rebranded as LG CNS in 2002. LG CNS specializes in services encompassing AI, cloud, and IT systems integration and management. The company has developed IT systems for government entities, including South Korea's National Tax Service and the Ministry of Finance of Indonesia, as well as corporations like Kakao Bank and Woori Bank. For the first three quarters of 2024, LG CNS reported revenues of approximately 4 trillion won ($2.7 billion) and net income of 233 billion won. Roughly half of its revenue stemmed from cloud and data-related services, such as cloud migration and building infrastructure for enterprise data collection. Its primary customers are two LG Group companies: LG Electronics and LG Chem. Both LG companies respectively accounted for about 21% of LG CNS's total revenues for 2023. The company's largest shareholder is LG Corp., the holding company for LG Group, with a 45% stake. Koo, the chairman and CEO of LG Corp., holds a 1% stake in his own name
LG CNS IPO South Korea LG Group Acquisitions IT Services Cloud Computing Artificial Intelligence
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