Daehan Electric Wire Conducts 50 Billion KRW Paid-in Capital Increase: "Investing in Growth Engines"

[Asia Economy Reporter Jeong Hyunjin] Daehan Electric Wire is conducting a paid-in capital increase worth 500 billion KRW.

Daehan Electric Wire held a board meeting on the 22nd and announced that it decided to carry out a paid-in capital increase through a rights offering followed by a general public offering of unsubscribed shares. The total number of newly issued shares is 388 million, with the current planned issue price at 1,290 KRW per share. The final issue price will be determined on March 3rd next year, reflecting future stock price trends.

Existing shareholders (as of January 27th next year) will be given priority allocation of approximately 0.46 new shares per one share held, and subscription will be conducted from March 8th to 10th of the same year. Oversubscription is possible within 20% of the allocated shares. If unsubscribed shares occur after the rights offering, the general public subscription will take place on March 14th and 15th. The new shares are scheduled to be listed on March 30th.

The secured funds will be used for facility and operating capital. 200 billion KRW will be invested as facility capital for establishing new domestic and overseas production bases to secure new growth engines, and 100 billion KRW will be allocated as operating capital for expanding global sales channels. 200 billion KRW will be used to repay borrowings. Upon repayment, Daehan Electric Wire’s debt ratio will decrease from 257.9% to 85.7% based on Q4 consolidated figures, and the borrowing dependency ratio will drop from 46.9% to 25.7%.

A Daehan Electric Wire official stated, "We plan to actively invest in the submarine cable factory establishment, which has been underway since last year, as well as securing global production bases in the U.S., Middle East, and exploring new markets currently under review," adding, "We will improve our financial structure and secure new growth engines to lay the foundation for a new leap forward."

This paid-in capital increase involves Mirae Asset Securities, Samsung Securities, and KB Securities as joint lead managers and underwriters, who have signed a standby underwriting agreement with Daehan Electric Wire. The standby underwriting agreement means that if unsubscribed shares occur, these securities firms will purchase all of the unsubscribed shares.

Meanwhile, Daehan Electric Wire resolved a capital reduction by reducing the par value at an extraordinary general meeting held on the 21st.

A Daehan Electric Wire official emphasized, "This paid-in capital increase will serve as a catalyst to expand Daehan Electric Wire’s role within the Hoban Group," adding, "Based on the funds secured through the capital increase, we will enhance competitiveness in the cable and solution industries, discover new businesses aligned with future society through synergy with the Hoban Group, and expand the company’s scale."

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