PE-invested LIG Nex1 applies to go public in Korea

The company is yet to indicate the size and pricing of the offering, but Reuters reported that it could value the entire business at KRW1.3-1.5 trillion ($1.16-1.33 billion). The offering is expected to take place as early as September.

LIG Nex1 produces anti-submarine and cruise missiles as well as weapons systems. Its parent, LIG Group, is one of a number of Korean conglomerates looking to divest assets in order to service debts or boost capital for their core businesses. LIG Engineering & Construction filed for court receivership in 2012.

The STIC consortium finalized the acquisition of its stake in February 2013, with the investment said to be worth KRW420 billion. Other members of the consortium include KTB Private Equity, KB Asset Management, Hana Daetoo Securities, Dongbu Securities, AJU IB Investment, Daishin Securities and Heungkuk Asset Management.

The deal requires that LIG Nex1 launches an IPO by the second half of 2016. If this fails to happen, the company can buy the 49% back from the investors at a set price or the investors could seize control of the business.

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• Topics
• Exits
• Industrials
• North Asia
• South Korea
• IPO
• Exit
• STIC Investments
• manufacturing