Hoban Industries, Largest Shareholder, Participates in Daehan Electric Wire's Capital Increase... Worth 201.8 Billion KRW

Daehan Electric Wire Dangjin Plant
Photo by Daehan Electric Wire

[Asia Economy Reporter Kim Heung-soon] On the 12th, Korea Electric Wire announced that its largest shareholder, Hoban Industrial Co., Ltd., will participate in Korea Electric Wire's paid-in capital increase. It plans to subscribe to all approximately 156.46 million shares, which is 100% of the shares allocated to existing shareholders. Based on the scheduled issue price (1,290 KRW), this amounts to approximately 201.8 billion KRW. The company explained that the investment scale may vary depending on the final confirmed issue price.

Hoban Industrial is the largest shareholder holding 40% of Korea Electric Wire's shares. By subscribing to all allocated shares, the existing shareholding ratio will be maintained even after the capital increase. If it oversubscribes up to 20% of the allocated shares, the shareholding ratio could expand up to a maximum of 42.62%.

A Korea Electric Wire official said, "Hoban Industrial's full participation in the capital increase means that it positively evaluates Korea Electric Wire's growth potential and future value and actively supports it," adding, "This decision will help minimize uncertainty for general investors and enhance trust in the company."

Korea Electric Wire is conducting a paid-in capital increase worth 500.5 billion KRW through a rights offering followed by a general public offering of forfeited shares. Subscription for existing shareholders will be accepted on March 8 and 10. If forfeited shares occur, the general public offering will begin on March 14. The company explained that if forfeited shares remain at the end, the underwriters Mirae Asset Securities, Samsung Securities, and KB Securities will fully subscribe, so funding will proceed without any issues.

Korea Electric Wire plans to use the funds raised through the capital increase for facility investment and operating funds to build an underwater cable factory and secure local factories globally in Saudi Arabia, the United States, and other locations, as well as for debt repayment.

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