LG Energy solution has allocated 10 million shares for a six-month commitment, plunging to 8.8% of 'distribution volume'

LG Energy solution, which has written all kinds of IPO history, has become a "Sold out stock" on the 27th of this month. Usually,  When only 20 percent of the total number of shares is  in the public offering, the stock  is considered out of stock, and LG Energy solution is expected to be able to trade only about 20.7 million shares, or 8.8 percent of the total shares, on the listing day. 

 

 With astronomical amounts of money raised from demand forecasts and general subscriptions and about 10 million shares allocated to institutions that offered mandatory six-month ownership, expectations for a rise in stock prices are also expected to grow. 

 

 However, the ratio of foreign institutional investors' commitment to allocation and mandatory possession has yet to be disclosed, but the low ratio of their commitment to mandatory possession can be a variable.

According to investment banking (IB) industry on the 21st, the number of shares available for distribution on the day of listing of LG Energy Solution was 20.7 million. The total number of listed stocks is 8.8 percent compared to 234 million shares. LG Chem (051910), the largest shareholder, promised not to sell 191.5 million shares (81.84 percent) for six months after listing, and Woori Private Equity Association promised not to sell 8.15 million shares (3.5 percent stake) for one year, while 13.63 million shares were allocated to institutions that offered a mandatory guarantee of possession for at least 15 days.
 
Specifically, 45,000 shares were allocated to mandatory institutions on the 15th, 1.75 million shares per month, 1.87 million shares per three months, and 9.96 million shares per six months.

As LG Energy solutionL is expected to join the list of "out-of-stock" stocks, investors in the public offering are expected to have higher expectations for stock prices. This is because if the ratio of stocks distributed on the listed day is low, the stock price can rise further because even if the stock price rises, the amount of goods that can realize capital gains is small. Usually, public offering stocks are considered out of stock even if the volume of their stocks reaches 20 percent. In March last year, SK Bioscience's distribution ratio, which recorded "DDa Sang (the starting price is twice the initial price, the subsequent upper limit price)," was 11.63%, and SK I-I Technology's distribution ratio, which rose more than 47% compared to the listed price, was also low at 15.3%. Hyundai Heavy Industries, which rose to the stock market with a 9.61 percent distribution rate similar to LG E&S's, closed at 111,500 won, up 86 percent from the initial public offering price.