[Alpha Biz= Kim Jisun] Minority shareholders of LS Group are taking active measures to oppose the planned initial public offering (IPO) of U.S. subsidiary Essex Solutions, despite LS proposing a separate allocation of shares to existing shareholders equivalent to the public offering.

According to the LS Minority Shareholders Alliance on January 20, the group submitted a petition to the Korea Exchange on January 16, requesting the immediate disapproval of the IPO’s preliminary listing review.

The alliance warned, “This IPO could pave the way for a chain of listings of other key group subsidiaries, such as LS MnM and LS Cable & System.”

LS announced last year its intention to take Essex Solutions public in the United States. Acquired by LS in 2008, Essex Solutions produces high-power specialty coil wires used in electric vehicle drive motors. The ownership structure is as follows: LS (95.4%) → LS I&D (100%) → Superior Essex (78.95%) → Essex Solutions.

However, LS’s IPO plan has sparked ongoing concerns among minority shareholders about potential duplicate listings.

In response, LS stated during a corporate presentation last year that “This involves relisting a company previously acquired and delisted on NASDAQ back into the domestic market. Currently, there are no plans to list other subsidiaries such as LS Cable & System.”

On January 15, LS also revealed that it is considering offering existing LS shareholders a separate allocation of shares in Essex Solutions equivalent to the public offering, in coordination with lead underwriters Mirae Asset Securities and Korea Investment & Securities. LS plans to hold another corporate briefing later this month to announce additional shareholder return measures.

 

 

 

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