Display venture looks toward IPO
LG.Philips LCD, a manufacturer of large display panels, says its offering could raise $1.6 billion.
The company, which is a joint venture between LG Electronics and Koninklijke Philips Electronics, said the global offering, including South Korea, will amount to 43.9 million shares.
It said it is selling 24 million common shares in the form of American Depositary Shares (ADS), and shareholders are selling another 10.3 million shares. In a separate offering, it is selling 9.6 million shares in South Korea.
LG.Philips LCD was formed in September 1999 as a joint venture between LG Electronics and Philips Electronics, which each currently own 50 percent, or 145 million shares, of the company's common stock.
There would be 323.6 million shares outstanding after the IPO, which could give the company an initial market capitalization of $11.6 billion based on the high end of the price range.
The company is the largest merchant supplier of large TFT-LCD panels, selling 20.9 million panels in 2003, according to the SEC filing. In 2003, LG.Philips reported $5.3 billion in revenues and $878 million in net income.
Each common share represents two ADSs, according to an amended offering document filed with the U.S. Securities and Exchange Commission.
Each ADS will cost between $15 and $18, the Seoul-based company disclosed in the SEC filing, meaning each share will cost an estimated $30-$36.
The shareholders have granted the underwriters--LG Investment & Securities, Morgan Stanley and UBS Investment Bank--the option to buy 5.1 million more shares to cover over-allotments, according to the filing.
The company said the price of the South Korea offering will be "effectively equivalent" to the ADS price and has granted the underwriters the option to buy 1.4 million more shares.
The company expects to raise $1.06 billion in proceeds, after commissions and based on $16.50 per ADS. It plans to use the proceeds to construct and operate its seventh fabrication plant.
LG and Philips each plans to sell 5.15 million shares in the offering, and each will retain a 43.2 percent stake.
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