LG Energy ousts SK Hynix from second place in Korean stock rankings
After entering the benchmark index on Friday with a $98 billion estimate, LG Energy Solutions became South Korea’s second-largest traded stock, indicating a steady transition after periods of chipmaker supremacy.
With a market value of $360 billion, Samsung Electronics Co. remains in top place.
Beginning of structural changes in the Korean market
LG Energy Solutions, being the largest Korean IPO in history, blew up the secondary market before it even began trading, sucking liquidity from other sources.
Because holding firm LG Chem Ltd. owns more than 80% of the corporation, supply-demand for the shares was highly constrained, although investment company requests for placing totaled $13 trillion.
The Kospi plunged into a bear market this week as the shares of the chipmaker plummeted amid fears of an impending rate hike in the United States and an outflow of cash from the battery maker’s IPO. The listing of LG Renewable Technologies underscores the growing significance of electric vehicle firms in Korea, such as SK Innovation Co. and Samsung SDI Co.
“As the Korean batteries sector catches up to the memory chip industry in terms of growth, the South Korean market is undergoing a structural shift.” However, considering the company’s current earnings level, it appears premature to value LG Energy Solutions higher than SK Hynix,” said Yuanta Equities Korea Co expert Hwang Kyu Won.