[Public Notice+] SY Decides on Paid and Free Capital Increase... "To Improve Financial Structure"

[Asia Economy Reporter Hyunseok Yoo] Comprehensive building materials company SY announced on the 30th that it will conduct a paid and free capital increase worth 25 billion KRW for the purpose of repaying borrowings.

The paid-in capital increase will be conducted by issuing new shares through a rights offering to existing shareholders followed by a general public offering of unsubscribed shares, with a total issuance of 10 million common shares. The record date for new share allocation is September 4, and the capital increase ratio is 40%. The discount rate is 25%, and the final issue price will be determined on October 6. The new shares are scheduled to be listed on November 3.

After the paid-in capital increase, a 15% free capital increase will also be conducted. A total of 5,080,088 shares will be allocated free of charge at a ratio of 0.15 new shares per one common share to shareholders registered in the shareholder registry as of October 21 and to shareholders who participated in the paid-in capital increase.

The approximately 25 billion KRW raised through this paid and free capital increase will be used to repay the company's short-term borrowings. The company expects the debt ratio to improve by 20 percentage points to the 170% range.

A company official stated, “We decided on the paid-in capital increase to secure liquidity in preparation for the prolonged COVID-19 situation and to improve the financial structure through repayment of borrowings. Recently, a favorable market environment has been created for us due to strengthened fire safety regulations and policies expanding rooftop solar power installations at factories, which is expected to boost our performance.”

SY is expected to benefit from the “Fire Safety Measures for Construction Sites” announced last month as a follow-up to the Icheon logistics center fire accident. The key point is the mandatory use of sandwich panels with quasi-noncombustible performance or higher.

SY is the number one domestic manufacturer of sandwich panels used for factory and warehouse exterior walls and roofs. The company sold its EPS (Styrofoam) panel production line, which is vulnerable to fire, and developed fire-resistant composite materials that do not burn. Recently, it has also entered the renewable energy business, focusing on rooftop solar power installations at factories.

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