LS Cable & System said Tuesday it is pushing ahead with the initial public offering of its electric vehicle parts unit LS EV Korea, with the aim of achieving sales of 1 trillion won ($858 million) in 2030 in the global market.

The Korean cable firm plans to file for preliminary screening of the EV unit at the nation’s tech-heavy secondary Kosdaq bourse. 

LS EV Korea was established in November 2017 after LS Cable & System spun off its electric vehicle parts business to nurture it as a new growth engine.

The parts company supplies electric car harnesses, battery packs and energy storage system parts to global automakers, such as BYD, Volkswagen and Volvo, and tech firms including LG Chem. These are the key components that power electric vehicles or operate and control sensors.

In 2018, the EV unit recorded sales of 220 billion won thanks to growth of the global electric vehicle market. Its current order backlog is about 400 billion won.

“With the funds raised through the listing, we plan to expand our facility and technology investments to actively foster LS EV Korea as a global electric vehicle parts company,” said Myung Roe-Hyun, president and CEO of LS Cable & System.

LS EV Korea aims to achieve sales of 1 trillion won in 2030 by boosting sales in China and Europe. The firm is owned by LS Cable & System, which holds a 53 percent stake, and private equity funds with a 47 percent stake. The IPO’s underwriter is Korea Investment & Securities. 

By Shin Ji-hye (shinjh@heraldcorp.com)