LG Display, with '6 Consecutive Quarters of Losses,' to Conduct 1.36 Trillion KRW Paid-in Capital Increase

Scheduled Issue Price 9550 KRW
"Securing Investment Funds for Small and Medium OLED"

LG Display is raising 1.36 trillion KRW through a paid-in capital increase. The purpose is to secure investment funds to strengthen competitiveness in new businesses, such as small and medium-sized OLED (organic light-emitting diode) facility investments. Some of the funds will be used for debt repayment to enhance financial stability.

LG Display announced on the 18th that it held a board meeting and resolved to conduct a paid-in capital increase worth 1.36 trillion KRW (142 million shares).

LG Display Paju Plant exterior view. [Photo by LG Display]

The paid-in capital increase will be conducted through a rights offering method, giving shareholders such as LG Electronics (with a 37.9% stake) priority subscription rights, and any unsubscribed shares will be offered to general investors through a public offering. The issue price has been tentatively set at 9,550 KRW per share, applying about a 20% discount to the current stock price (12,310 KRW). The final issue price will be confirmed on February 29 of next year after the first and second issuance price calculation procedures.

LG Display plans to invest 30% of the secured funds into small and medium-sized OLED facility investments to expand the scale of order-based businesses. It will prepare for the mass production and customer supply of IT OLED production lines applying tandem technology next year without disruption, and carry out facility investments such as building clean rooms and IT infrastructure for the mobile OLED production lines expanded in the second half of the year. Additionally, the capital increase funds will be used for infrastructure construction related to the expansion of automotive OLED panel production lines, as well as for the introduction of new production equipment such as exposure equipment and inspection devices. The funds will also be used for general capital expenditures aimed at improving product quality and process improvements, including upgrading existing facilities and modifying equipment to respond to new models. Some of the funds will be allocated for debt repayment to strengthen financial stability.

Kim Seong-hyun, LG Display’s Chief Financial Officer (CFO, Vice President), said, "We aim to continue the trend of performance improvement by focusing more on OLED across all business areas and strengthening the customer base, while further enhancing business stability. Through company-wide cost innovation and operational efficiency, we will further strengthen financial stability and solidify market trust by proactively securing funds to increase business stability and accelerate performance achievement."

Meanwhile, LG Display recorded operating losses for six consecutive quarters through the third quarter of this year, accumulating a deficit of 4.7653 trillion KRW.

However, there are expectations that the company will turn a profit in the fourth quarter. As of this day, the average operating profit consensus from securities firms is 89 billion KRW. The annual operating profit consensus for next year is also 102.2 billion KRW, making a profit for the first time in three years highly likely.

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