The artificial intelligence unit of South Korean conglomerate LG, known as LG CNS, made its much-anticipated debut on Seoul's stock market on Wednesday. The initial public offering (IPO) marked the largest in South Korea over the past three years, attracting significant attention from investors and analysts alike. However, the company's shares experienced a turbulent start, falling well below the IPO price by the end of the trading day.
LG CNS shares opened at 60,500 won, already down 2.3% from the IPO price of 61,900 won. As trading progressed, the shares saw a further decline, nosediving by as much as 11.3% during the day. Ultimately, they closed at 55,800 won, marking a 9.8% decrease from the IPO price. This sharp decline in share value raised concerns among investors about the company's market performance and future prospects.
Despite the rocky start, LG CNS plans to allocate the funds raised from its IPO towards expanding its operations in artificial intelligence, cloud computing, and smart factory businesses. These strategic investments are expected to bolster the company's position in the rapidly evolving tech industry. With a market value of 5.7 trillion won following the IPO, LG CNS is now ranked as the 67th biggest company on South Korea's benchmark KOSPI index.
The completion of the IPO on Wednesday signifies a pivotal moment for LG CNS, as it aims to leverage its new capital to further develop and enhance its technological offerings. The company remains optimistic about its growth potential in AI and related sectors, despite the initial challenges faced on the stock market.
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