[Special Stock] Hanwha Aero Plummets 10% Following 3.6 Trillion Won Rights Offering Announcement

Hanwha Aerospace plunged over 10% in early trading. The large-scale rights offering announced the previous day is interpreted as a burden on the stock price.

As of 9:04 a.m. on the 21st, Hanwha Aerospace is trading at 648,000 won, down 10.25% (74,000 won) from the previous close.

Earlier, Hanwha Aerospace announced after market close the previous day that it had decided on a 3.6 trillion won shareholder-allocated rights offering. The goal is to secure overseas ground defense, shipbuilding & marine, and marine defense bases to leap forward as a top-tier player in the global defense, shipbuilding & marine, and space & aviation sectors. Following the news of the large-scale rights offering, the holding company Hanwha saw a surge in trading volume in the alternative exchange pre-market, with its stock price plunging 9.89% (4,700 won) that day.

Lee Hangyeol, a researcher at Kiwoom Securities, explained, "While it is true that investment is necessary due to the mid- to long-term expansion of defense demand, considering the scale and method of fundraising, a short-term stock price adjustment is inevitable." Ahn Yudong, a senior researcher at Kyobo Securities, said, "In an unprecedented era of global rearmament, swift investment is inevitable," but also evaluated, "It is a regrettable decision to raise funds through a rights offering for capital to be spent over three to four years."

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