LG Electronics CEO William Cho (Image provided by LG Electronics)
SEOUL, Dec. 17 (Korea Bizwire) –LG Electronics unveiled its second corporate value enhancement program on Tuesday, outlining plans to pursue an initial public offering (IPO) for its Indian subsidiary and retire approximately 761,000 treasury shares by next year.
This move follows the company’s first strategic announcement in October, which aimed to achieve a return on equity (ROE) exceeding 10% by 2027.
In a regulatory filing, LG Electronics confirmed that on December 6, it submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), signaling progress in its IPO preparations. The company said the final decision on the listing will depend on market conditions and investor demand.
To enhance shareholder value, LG Electronics will retire the treasury shares—representing 0.5% of its total outstanding shares—within the scope of available distributable profits.
The buyback is expected to improve key metrics like earnings per share (EPS) and book value per share (BPS) by reducing the total share count, ultimately benefiting shareholders.
LG Electronics emphasized its commitment to transparent communication with investors, building on its previously announced long-term strategy. In July 2022, the company unveiled its “2030 Future Vision” aimed at transforming into a “Smart Life Solution” provider.
Financially, LG Electronics targets an annual growth rate and operating margin of 7%, alongside a corporate value multiple of seven, aspiring to reach consolidated revenue of KRW 100 trillion (excluding LG Innotek).
As part of its shareholder return policy, LG Electronics reiterated its commitment to allocate at least 25% of consolidated net profit to shareholders over the next three years.
This includes maintaining a minimum annual dividend of KRW 1,000 per share and continuing semi-annual dividends to provide greater predictability for investors.
The company added that it will continue to evaluate further shareholder return initiatives and promptly share updates with the market.
Kevin Lee (kevinlee@koreabizwire.com)
