Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Korean EV battery unit play <strong><a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy (LGENERGY KS)</a></strong> has now opened its books to raise up to US$10.7bn, which will be the country's largest-ever IPO.</li>
<li>Shares are expected to be sold in a price range of ₩257,000 to ₩300,000 per share, in line with information released last month.</li>
<li>Separately, <strong><a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem Ltd (051910 KS)</a></strong> is trading at its widest indicative discount to NAV in the past twelve months. </li>
</ul>


Korean EV battery unit play LG Energy (LGENERGY KS) has now opened its books to raise up to US$10.7bn, which will be the country's largest-ever IPO.
Shares are expected to be sold in a price range of ₩257,000 to ₩300,000 per share, in line with information released last month.
Separately, LG Chem Ltd (051910 KS) is trading at its widest indicative discount to NAV in the past twelve months. 


LG Chem Trading Cheap As LG Energy Opens Its Books

Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>After its IPO, <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> is destined for inclusion in various indexes, from broad market indexes to countless sustainable/ESG niche indexes.</li>
<li>The sustainable/ESG index niche includes a growing number of EV/EV battery-themes indexes in large part because of the climate-importance of decarbonising transportation.</li>
<li>Indexing leader <a href="https://www.smartkarma.com/entities/msci-inc" target="_blank" data-smartkarma-citation="entities:17865:1" rel="noopener">MSCI (MSCI US)</a> publishes a number general sustainable/ESG indexes relevant to LGES, and small number of thematic indexes like the Future Mobility Index.</li>
</ul>


After its IPO, LG Energy Solution (LGENERGY KS) is destined for inclusion in various indexes, from broad market indexes to countless sustainable/ESG niche indexes.
The sustainable/ESG index niche includes a growing number of EV/EV battery-themes indexes in large part because of the climate-importance of decarbonising transportation.
Indexing leader MSCI (MSCI US) publishes a number general sustainable/ESG indexes relevant to LGES, and small number of thematic indexes like the Future Mobility Index.


LG Energy Solution (Pre-IPO ESG Analysis): Relevant Thematic Sustainable/ESG Indices from MSCI

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> will eventually be a constituent of many indexes – broad market indexes and sustainable/ESG indexes (general and EV/EV battery thematic).</li>
<li>Indexes and thematic funds related to EVs/batteries are on the rise, because decarbonisation of the transportation sector is a key mitigation and transition pathway for most countries.</li>
<li>Solactive is a leading sustainable/ESG index provider – third overall and first in LGES-relevant thematic indexes (75.2% of AUM in indexed equity EV/EV battery-themed ETFs).</li>
</ul>



LG Energy Solution (LGENERGY KS) will eventually be a constituent of many indexes – broad market indexes and sustainable/ESG indexes (general and EV/EV battery thematic).
Indexes and thematic funds related to EVs/batteries are on the rise, because decarbonisation of the transportation sector is a key mitigation and transition pathway for most countries.
Solactive is a leading sustainable/ESG index provider – third overall and first in LGES-relevant thematic indexes (75.2% of AUM in indexed equity EV/EV battery-themed ETFs).


LG Energy Solution (Pre-IPO ESG Analysis): Relevant Thematic Sustainable/ESG Indices from Solactive

<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.

<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

South Korea

LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

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LG Energy Solution (373220 KS)

LG Chem Trading Cheap As LG Energy Opens Its Books

Potentially go outright long or, until LG Energy lists, hedge against a basket of domestic chemical peers, all of whom have outperformed LG Chem...

David Blennerhassett

LG Energy Solution (Pre-IPO ESG Analysis): Relevant Thematic Sustainable/ESG Indices from MSCI

LG Energy Solution is destined for inclusion in countless indexes, from broad market indexes to thematic sustainable/ESG indexes such as MSCI's...

Kyle Rudden

LG Energy Solution (Pre-IPO ESG Analysis): Relevant Thematic Sustainable/ESG Indices from Solactive

LG Energy will eventually be a constituent of various indexes, board market and sustainable/ESG indexes. The latter includes EV/battery-themed...

Kyle Rudden

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

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