Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>LG Energy Solution leads an industry that is, quite literally, powering a critical climate-change mitigation and transition pathway – decarbonising the global transportation sector.</li>
<li>The company embraces this role and is fully in charge. CHARGE... the acronym (and perhaps even a battle cry) for LGES's comprehensive sustainability/ESG vision and strategy.</li>
<li>Lately, pre-IPO ESG research has been digging through corporate dirt for ESG landmines before someone steps on one. Dare I say it, but LGES is more ESG-opportunity than ESG-risk.</li>
</ul>


LG Energy Solution leads an industry that is, quite literally, powering a critical climate-change mitigation and transition pathway – decarbonising the global transportation sector.
The company embraces this role and is fully in charge. CHARGE... the acronym (and perhaps even a battle cry) for LGES's comprehensive sustainability/ESG vision and strategy.
Lately, pre-IPO ESG research has been digging through corporate dirt for ESG landmines before someone steps on one. Dare I say it, but LGES is more ESG-opportunity than ESG-risk.


LG Energy Solution (Pre-IPO ESG Analysis): Powering a Primary Pathway to Preserving the Planet

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The ETF operators (KODEX and TIGER) applied to KRX for approval of a special change for an early swap between LG Chem and LG Energy.</li>
<li>KRX will likely approve this special change application, and the effective date should be immediately after listing. I will update when the exact implementation date of each index is released.</li>
<li>We also detect a trend spreading in the local industry that many local active managers decided to sell all other secondary battery stocks to raise funds to purchase LG Energy.</li>
</ul>


The ETF operators (KODEX and TIGER) applied to KRX for approval of a special change for an early swap between LG Chem and LG Energy.
KRX will likely approve this special change application, and the effective date should be immediately after listing. I will update when the exact implementation date of each index is released.
We also detect a trend spreading in the local industry that many local active managers decided to sell all other secondary battery stocks to raise funds to purchase LG Energy.


LG Energy: Sector ETFs Special Rule Change & Local Active Managers' Preemptive Trading

Equity Capital Markets

LG Energy Solution / Equity Capital Markets

<ul>
<li>The bankers began to receive pre-orders from overseas institutions from the 7th of this month. And it had already far exceeded the amount allocated to the institutions within a week.</li>
<li>But the market is genuinely concerned that the cause of the fire has not yet been clearly identified, which leads to concerns about whether this risk can be structurally prolonged.</li>
<li>It seems that the valuation attractiveness and the flow imbalance due to the tight float seem to offset concerns about the risks associated with NCM batteries.</li>
</ul>


The bankers began to receive pre-orders from overseas institutions from the 7th of this month. And it had already far exceeded the amount allocated to the institutions within a week.
But the market is genuinely concerned that the cause of the fire has not yet been clearly identified, which leads to concerns about whether this risk can be structurally prolonged.
It seems that the valuation attractiveness and the flow imbalance due to the tight float seem to offset concerns about the risks associated with NCM batteries.


LG Energy IPO: Great Pre-Order Success, but Still Worrying Aspects

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>In this insight, we discuss about what the locals are saying about LG Energy Solution in Korea to better understand how the locals are thinking about this IPO.</li>
<li>The local market is generally positive on the LG Energy Solution IPO. Valuations are reasonable and many investors expect the IPO to be priced at 300,000 won (high end). </li>
<li>Some of the major issues highlighted by the locals on this IPO include relatively cheap valuation relative to CATL, growing market share globally (ex-China), and low free float post IPO. </li>
</ul>


In this insight, we discuss about what the locals are saying about LG Energy Solution in Korea to better understand how the locals are thinking about this IPO.
The local market is generally positive on the LG Energy Solution IPO. Valuations are reasonable and many investors expect the IPO to be priced at 300,000 won (high end). 
Some of the major issues highlighted by the locals on this IPO include relatively cheap valuation relative to CATL, growing market share globally (ex-China), and low free float post IPO. 


LG Energy Solution - What Are the Locals Saying About This IPO?

<ul>
<li>In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). </li>
<li>Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.</li>
<li>Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. </li>
</ul>


In the past week, Posco (005490 KS) announced that it will form a holding company structure through a physical spin-off (물적분할). 
Many minority shareholders are opposing this move since they believe that this structure could result in the company eventually listing POSCO (steel company) and their stakes could be diluted.
Shareholders will finally vote on this new organizational structure on 28 January 2022. Many minority shareholders are opposing on this new deal. The final vote will likely remain very close. 


POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

South Korea

LG Chem Ltd. is a chemical manufacturer. The Company's products include petrochemicals, plastic resins, and engineering plastics. LG Chem also produces industrial and electronic materials.

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LG Chem (051915 KS)

LG Energy Solution (Pre-IPO ESG Analysis): Powering a Primary Pathway to Preserving the Planet

Decarbonising transportation is climate-critical. Electric vehicles are cast for the lead role. Without power, the show can't go on. That puts...

Kyle Rudden

LG Energy: Sector ETFs Special Rule Change & Local Active Managers' Preemptive Trading

I summarize the situation in which the local sector ETF operators applied to KRX for a rule change to include LG Energy early and how local active...

Sanghyun Park

LG Energy IPO: Great Pre-Order Success, but Still Worrying Aspects

This post summarizes investors' reactions to the LG Energy IPO. Specifically, it outlines the nature of investors' fundamental interests and the...

Sanghyun Park

LG Energy Solution - What Are the Locals Saying About This IPO?

The local market is generally positive on the LG Energy Solution IPO. Valuations are reasonable and many investors expect the IPO to be priced at...

Douglas Kim

POSCO's Physical Spin-Off to Form POSCO Holdings: Opposed by Many Minority Shareholders

Overall, we believe that POSCO's shares could be negatively pressured by this decision on the company to form a physical spin-off of the company.

Douglas Kim

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