LGD Employee Stock Ownership Plan Pre-Subscription Rate Hits High... Positive Signal for Rights Offering

Sold Out with 120% of Initially Allocated Employee Stock Ownership
High Enthusiasm Among Employees
Plan to Secure Funds Through 1.4 Trillion Won Rights Offering

The employee stock ownership plan (ESOP) shares offered to LG Display employees have been completely sold out, signaling a positive outlook for LG Display's ongoing trillion-won-level paid-in capital increase.

According to industry sources on the 28th, LG Display's ESOP pre-subscription rate was approximately 120%. Previously, LG Display had preferentially allocated 20% of the new shares from the paid-in capital increase to the ESOP association.

The 120% pre-subscription rate reflects strong enthusiasm from employees. It also indicates confidence in the ability to purchase shares at a discounted price compared to the current stock price, as well as confidence in the competitiveness of the organic light-emitting diode (OLED) business.

The first issuance price announced on the 24th of last month was 10,070 KRW. The final issuance price will be determined as the lower amount between the first issuance price and the second issuance price calculated on the 29th. Existing shareholder subscriptions will take place over two days starting from the 6th of next month. If there are any unsubscribed shares after the existing shareholder subscription, a general public subscription will be held from the 11th to the 12th of the same month, with the new shares being listed on the 26th. The strong response to the ESOP subscription is expected to positively influence the existing shareholder subscription as well. LG Display closed at 11,130 KRW on the previous day on the KOSPI market, down 3.39%.

LG Display plans to proactively secure funds through a paid-in capital increase of approximately 1.4 trillion KRW to strengthen competitiveness and future growth foundations across all areas of the OLED business.

The funds raised through the paid-in capital increase will be used for facility investment to expand the small and medium-sized OLED business for IT, mobile, and automotive applications; operating funds to stabilize production and operations across all OLED business sectors including large, medium, and small sizes; and debt repayment to enhance financial stability.

LG Display aims to increase large OLED shipments by 20% compared to last year, strengthen its position in the premium TV market centered on large and extra-large OLED TVs, and improve profitability. In the small and medium-sized OLED sector, the goal is to continuously expand order-based business and enhance business competitiveness.

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