Korea Investment & Securities Eyes IMA Entry with 900 Billion Won Rights Offering

Korea Investment & Securities, which is seeking to enter the Integrated Investment Account (IMA) business, has launched an aggressive capital expansion effort.

On August 26, Korea Financial Holdings announced that its subsidiary, Korea Investment & Securities, has decided to conduct a rights offering to raise 900 billion won in operating funds. As a result, 18,000 new common shares will be issued. The par value per share is 5,000 won.

The size of this rights offering amounts to 8.6% of Korea Investment & Securities’ standalone equity capital as of the end of June. Korea Financial Holdings, which owns 100% of Korea Investment & Securities, will fully participate in the rights offering. The scheduled payment date is September 29.

The record date for the new share allocation is September 10, and the number of new shares allocated per existing share is 0.0005116.

Korea Investment & Securities explained that the purpose of this rights offering is to “strengthen financial soundness and secure growth engines through capital expansion.”

With this rights offering, Korea Investment & Securities’ equity capital will surpass the 11 trillion won mark. As of the end of June, its equity capital stood at 10.5216 trillion won. If projected net income for the second half of the year is included, some expect that the figure could exceed 12 trillion won by year-end.

Korea Investment & Securities’ aggressive capital expansion is also seen as preparation for entering the IMA business, which is considered essential for its leap toward becoming a major investment bank. The IMA is a financial product that enables clients’ deposits to be invested in a variety of areas, such as corporate finance assets, to pursue higher returns. The government plans to designate IMA operators within this year. Currently, three companies-including Korea Investment & Securities, Mirae Asset Securities, and NH Investment & Securities-have applied for business licenses. Among comprehensive financial investment companies that meet the application requirement of 8 trillion won in equity capital, Korea Investment & Securities is evaluated as a well-prepared operator with strengths in corporate finance and related areas.

On the same day, NICE Credit Rating stated regarding the rights offering, “While we believe this will have a positive impact on Korea Investment & Securities’ capital adequacy, competitiveness, and market position, the effect on its credit rating will be limited.” Korea Investment & Securities’ standalone credit rating (aa) is already among the highest in the securities industry. NICE Credit Rating added, “If the IMA application is approved, the additional equity capital raised through this rights offering is expected to serve as a driving force to expand funding limits and strengthen the business foundation.”

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