LG CNS "Secures 600 Billion KRW Investment Funds through IPO... Leading the Global DX Market"

Strengthening DX Technology Capabilities... Considering AI Company Acquisition
Full-Scale Overseas Expansion..."DX First Mover Leap"

On the 9th, LG CNS held an initial public offering (IPO) press conference at the Conrad Hotel in Yeouido, Seoul, unveiling its mid- to long-term growth strategy.

At the conference, Hyun Shin-gyun, CEO of LG CNS, stated, "Using this IPO as a stepping stone, we will strengthen our digital transformation (DX) technology capabilities such as artificial intelligence (AI) and cloud, and fully launch our global business to become a 'First Mover' leading the global DX market."

Hyun Shin-kyun, President of LG CNS, is seen making a presentation at the IPO press conference held on the 9th at the Conrad Hotel in Yeouido, Seoul. Photo by LG CNS

LG CNS submitted its securities registration statement on the 5th of last month and is pursuing a listing on the Korea Composite Stock Price Index (KOSPI) market in February. The total number of shares offered is 19,377,190, with a desired public offering price per share ranging from 53,700 KRW to 61,900 KRW. Through this listing, it is expected to secure up to 600 billion KRW in investment funds. These funds will be concentrated on fostering 'future growth engines' such as DX technology research and development and strengthening global competitiveness.

First, the investment funds will be used to enhance research and development (R&D) in AI and cloud sectors, securing new technologies and services to lead customers' AI transformation.

This year, LG CNS will fully implement the 'Application with AI' strategy for enterprise-wide AI adoption. Centered on the dedicated 'AI Center' organization, AI will be integrated across the entire enterprise?from marketing and sales to manufacturing, procurement, and human resources?and innovative technologies such as the recently spotlighted AI agents will be used to drive customers' AI transformation.

The AI data center business will also be actively promoted. Since AI data centers use ultra-high-power hardware, technologies such as 'immersion cooling,' which cools servers with special liquids, and 'digital twin' technology are essential. LG CNS is currently conducting immersion cooling technology research projects with the Korea Energy Technology Evaluation Institute under the Ministry of Trade, Industry and Energy. They plan to provide differentiated services using digital twin technology that virtually implements data centers to monitor equipment overheating in real time.

In the DX field, LG CNS is actively considering acquiring AI companies that can create synergies, while also strengthening competitiveness in the cloud sector.

On another front, LG CNS will accelerate its overseas expansion. It will officially introduce to the global market platforms such as 'LG Optapex,' a digital marketing optimization platform for online market sellers; 'Perfectwin ERP Edition,' an enterprise resource planning (ERP) test automation solution; and 'SINGLEX,' a platform offering global solutions for core business areas including human resource management, marketing and sales, manufacturing, R&D, and quality control in a software-as-a-service (SaaS) format.

LG CNS will also speed up global expansion in smart city, smart factory, and smart logistics sectors. The company is strengthening its global presence through partnerships with leading local companies. In September last year, it established a DX business joint venture with Indonesia’s Sinar Mas Group and signed a partnership with SAP, the world’s number one global ERP company, to strengthen next-generation ERP business. Going forward, LG CNS plans to target overseas markets by considering mergers and acquisitions of global companies with excellent DX technology capabilities.

LG CNS will also accelerate innovation in traditional IT service businesses such as system integration (SI) and operations, accumulated over more than 40 years. The core focus is expanding the Global Delivery Center (GDC). By expanding GDC bases utilizing overseas IT talent, development productivity will be increased, while domestic talent will concentrate on high value-added tasks such as business analysis and system design. Additionally, AI will be applied throughout the entire system development process?from analysis, design, implementation, to testing?to enhance productivity.

LG CNS plans to conduct a public subscription for general investors from the 21st to the 22nd of this month and is scheduled to newly list on the KOSPI market in February. The lead underwriters for the listing are KB Securities, Bank of America (BoA), and Morgan Stanley, while the joint underwriters are Mirae Asset Securities, Daishin Securities, Shinhan Investment Corp., and JP Morgan.

This content was produced with the assistance of AI translation services.