Daehan Electric Wire "Largest shareholder Hoban Industries, Rights Offering Oversubscribed by 120%"

"Confidence in Success of Submarine Cable Project"

Daehan Electric Wire announced on the 10th that Hoban Industrial, the largest shareholder with a 40.1% stake, held a board meeting and decided to subscribe to 120% of its allocated shares in the company's rights offering. Hoban Industrial holds a 40.1% stake in Daehan Electric Wire. Daehan Electric Wire explained that this decision was possible because they are confident in the company's growth potential and the success of the submarine cable business.

Hoban Industrial will subscribe to 30.02 million shares, which includes 100% of the rights offering shares (approximately 25.02 million shares) plus the maximum 20% of the oversubscription limit. Based on the planned issue price of 8,480 KRW, this means an investment of 254.6 billion KRW, accounting for 48.4% of the total rights offering funds of 525.8 billion KRW. Oversubscription refers to the act of receiving additional allocations when unsubscribed shares occur after the rights offering subscription by existing shareholders.

A Daehan Electric Wire official said, "Hoban Industrial's participation at the maximum limit in the rights offering signifies their positive evaluation of the future value of the submarine cable business that Daehan Electric Wire is actively pursuing and their willingness to join," adding, "With the largest shareholder showing strong support and trust, we can now fully commence investments to secure future growth engines."

Exterior view of Daehan Electric Wire Dangjin Plant. [Photo by Daehan Electric Wire]

Daehan Electric Wire will conduct the 52.58 billion KRW rights offering through a shareholder allocation followed by a general public offering of unsubscribed shares. The lead managers KB Securities, Mirae Asset Securities, and NH Investment & Securities will purchase all unsubscribed shares if any occur during the general public offering after the shareholder allocation. Thanks to this structure, Daehan Electric Wire expects to raise funds without any issues.

475.8 billion KRW will be invested in the construction of the second submarine cable factory. The investment in the second factory will proceed simultaneously with the construction of the first submarine cable factory. The remaining 5 billion KRW will be used to secure factories in the U.S. and Saudi Arabia, markets where demand for power grids is increasing.

A Daehan Electric Wire official said, "The decision by the largest shareholder will alleviate concerns among general investors and raise expectations for the rights offering, thereby enhancing the company's credibility," adding, "We will strengthen the company's competitiveness and actively expand our business to increase corporate and shareholder value."

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