LVMC Holdings Decides on 48 Billion KRW Paid-in and Free Capital Increase

[Asia Economy Reporter Jang Hyowon] LVMCHoldings announced on the 16th that it has decided on a paid-in capital increase through a rights offering followed by a general public offering of forfeited shares, as well as a bonus issue.

The paid-in capital increase will raise 23.5 million shares, amounting to approximately 48 billion KRW, and a bonus issue will be conducted at a ratio of 0.4 shares per 1 share.

LVMCHoldings plans to use the funds secured through this paid-in capital increase for ▲repayment of borrowings ▲repayment of accounts payable and funds for vehicle orders and parts purchases ▲other operating expenses.

A company official stated, “The purpose is to proactively respond to the ongoing uncertainties in domestic and international financial markets,” adding, “If the borrowed funds are repaid with the capital increase proceeds, the current debt ratio of 55% will decrease to around 42%, strengthening financial soundness and simultaneously improving profitability through reduced interest expenses.”

After the completion of the paid-in capital increase payment, a bonus issue will be conducted for existing and new shareholders at a ratio of 0.4 shares per 1 share. Shareholders participating in the paid-in capital increase will also be allocated bonus shares, which is expected to increase participation rates among both existing and new shareholders.

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