Jeju Air Rights Offering, Existing Shareholders' Subscription Rate at 90.1%... Secures 135 Billion KRW

[Asia Economy Reporter Yoo Je-hoon] Jeju Air announced on the 14th that it recorded a subscription rate of 90.1% in the rights offering for employee stock ownership and existing shareholders held on the 12th and 13th. As a result, Jeju Air secured approximately 135 billion KRW out of the total subscription amount of about 150 billion KRW.

In this existing shareholder subscription, the largest shareholder AK Holdings absorbed the entire allocated amount, and the second largest shareholder Jeju Special Self-Governing Province also paid about 4 billion KRW. The company explained that although the financial situation is not good due to the novel coronavirus infection (COVID-19), this result reflects consideration of Jeju Air's contributions to the local community so far.

Additionally, the general public offering portion of 9.9% (about 1.2 million shares) will begin subscription for two days starting from the 18th. The issue price is 12,400 KRW per share, which is about 20% lower than the closing price on the 13th (15,550 KRW).

Jeju Air plans to use the funds raised through this rights offering to stabilize its operations by repaying debts and securing operating funds through existing cash and government support.

A Jeju Air official stated, "It is true that the market situation is difficult due to COVID-19, but we are overcoming the crisis based on efficient fleet management, company-wide pain-sharing, and government support," adding, "This rights offering will serve as a stepping stone to further solidify our position as a leading low-cost carrier (LCC) in the post-COVID era.”