LG Electronics weighs India IPO to help chase $75-billion goal

LG Electronics, a global supplier of consumer electronics based in South Korea, is contemplating an initial public offering (IPO) for its Indian subsidiary. This was revealed by the company's CEO, William Cho, in a recent interview. India, being a key market for LG, has seen the company's revenue rise to 2.87 trillion won in the first half of 2024, marking a 14% increase compared to the same period last year.

Cho mentioned that the thriving Indian IPO market is a significant factor in LG's consideration of a public issue. He noted, “We’ve been closely monitoring the developments in the Indian IPO market, particularly observing similar industry cases.” While LG is exploring the possibility of an IPO in India, Cho clarified that no definitive decisions have been made, and the company has yet to determine a valuation for such an offering.

The consideration of an IPO in India aligns with LG's broader ambition to boost its electronics business revenue to 100 trillion won ($75 billion) by 2030. In 2023, LG achieved an overall revenue of $65 billion, with its Indian market contributing significantly. The company’s net income from India surged by 27% year-on-year, reaching 198.2 billion won in the first half of 2024.

This statement by Cho marks the first public acknowledgment of LG's potential IPO plans in India, although there have been previous media reports speculating on the matter. Additionally, Hyundai Motor, another leading South Korean company, reportedly aims to raise approximately $3.5 billion through an IPO in India, according to sources.

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