Polaris Sewon Major Shareholder Oversubscribes Rights Offering by 120%... "Confidence in Growth"

[Asia Economy Reporter Jang Hyowon] Polaris Sewon announced on the 12th that its largest shareholder, Polaris Office, will participate in the rights offering subscription for existing shareholders scheduled for the 13th to 14th with an oversubscription of 120%. This move aims to strengthen responsible management under the Polaris Group system and express confidence in growth.

A Polaris Sewon official stated, "This rights offering is not for unavoidable purposes such as debt repayment but is conducted to secure investment funds for future growth," adding, "With the increase in orders for electric vehicle parts, we currently hold the largest order backlog in history, and we judged that now is the right time for the company to take a step forward."

He continued, "The largest shareholder, Polaris Office, is also leading this subscription based on abundant financial capacity," emphasizing, "The group plans to review various measures to enhance shareholder value at the group level."

This rights offering will proceed through a general public offering of unsubscribed shares after allocation to shareholders. The number of shares to be issued is 10 million, totaling 15.75 billion KRW. The purpose of the funds is 6.75 billion KRW for operating capital and 9 billion KRW for acquiring securities of other companies.

The new share issuance price has been fixed at 1,575 KRW. The number of new shares allocated per share is approximately 0.299 shares, and oversubscription up to 120% of the subscription rights certificates held is possible. The payment date is July 21, and the new shares are scheduled to be listed on August 3.

Polaris Sewon plans to use the funds for operating capital such as raw material purchases to meet order volumes, facility investments at its Mexico and Pyeongtaek plants, and acquiring shares to strengthen control over its subsidiary Polaris Uno.

As the supply of electric vehicle parts to various clients has increased, the company aims to establish a higher level of production capacity.

Currently, Polaris Sewon supplies automotive air conditioning parts to Hyundai Motor, Kia, GM (General Motors), Ford, Tesla, Lucid Motors, and Rivian through its customers. Last year, it diversified its business structure by incorporating Polaris Uno, a synthetic fiber company specializing in wigs with a sound financial structure, as a consolidated subsidiary.

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