Jeju Air "Rights Offering General Subscription 21 to 1... Secures 217.3 Billion Won"

[Asia Economy Reporter Yoo Hyun-seok] Jeju Air secured 217.3 billion KRW in funds by recording a subscription rate of 21 to 1 in its general public offering for paid-in capital increase.

On the 10th, Jeju Air announced that the general public offering conducted over two days from the 8th to the 9th of this month recorded a final subscription rate of 21.04 to 1. The issue price was 7,980 KRW per share.

Jeju Air evaluated that AK Holdings, the major shareholder, took responsibility for 20% more than the initially allocated amount, which played a significant role in the success of this general public offering for paid-in capital increase by showing not only expectations for Jeju Air's performance recovery but also a strong commitment to future growth potential.

Jeju Air will use the funds secured through this paid-in capital increase as facility funds for the introduction of next-generation aircraft. A Jeju Air official said, "The purpose of this investment is to further solidify our position as the No. 1 LCC," adding, "The newly introduced B737-8 aircraft has more than 15% fuel savings compared to the existing B737-800 aircraft, and it enables the expansion of new routes to Central Asia and Indonesia, creating new opportunities."

Meanwhile, Jeju Air signed a purchase contract with Boeing in the United States for 40 B737-8 aircraft in November 2018 to modernize its fleet. In April of this year, it became the first LCC to introduce a next-generation aircraft dedicated simulator, which is being used for pilots' pre-adaptation training for new aircraft and for enhancing the safety operation system.

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