[Public Notice+] LVMC Holdings to Expand Myanmar New Car SKD Plant Through Fundraising

[Asia Economy Reporter Yoo Hyun-seok] LVMH Holdings announced on the 7th that it will conduct a paid-in capital increase worth a total of 110 billion KRW through a rights offering followed by a general public offering of forfeited shares. The new shares to be issued through this capital increase amount to 3.5 million common shares, with Shinhan Financial Investment acting as the lead underwriter under a full underwriting agreement.

The main purposes of this capital increase are divided into ▲funds for additional construction of the Hyundai Motor SKD assembly plant ▲funds for ordering Hyundai Motor vehicles and purchasing parts in Myanmar ▲funds for logistics business and building a non-face-to-face vehicle sales platform ▲and other operating funds.

The largest portion of this capital increase is allocated to the cost of additional construction of the Hyundai Motor SKD assembly plant. Since February last year, the company has completed a factory near Yangon and has been producing and selling vehicles using the SKD (semi-complete knock down) method.

Currently, in Yangon, except for vehicles produced within Myanmar, the issuance of vehicle license plates has been suspended, and license plates are only issued for vehicles coming out of the SKD plant. As a result, demand for SKD-produced vehicles is rapidly growing. The company believes that the current production cannot keep up with the increasing demand for automobiles, making the construction of an additional new vehicle plant urgent.

Additionally, through this capital increase, the company plans to actively promote new businesses that have significant synergy effects with existing businesses such as total solution logistics, online used and new car sales, and can drive the group’s long-term growth.

A company official stated, “This is the first capital increase in 11 years since being the first Korean diaspora company to be listed on the KOSPI market in 2010,” adding, “With the secured funds, we aim to increase our market share in the rapidly growing Myanmar automobile market and secure future growth engines through new business initiatives.” He continued, “In contrast to the expected difficulties faced by competitors and other industries after the COVID-19 pandemic, this will be an opportunity for LVMH Holdings to achieve sustainable growth through securing quality funds.”

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