[Asia Economy Reporter Jang Hyowon] Polaris Sewon has successfully completed a paid-in capital increase through a rights offering followed by a general public offering of unsubscribed shares. Investment funds of 556.7 billion KRW poured into the general public offering, significantly raising expectations for the electric vehicle parts business.
On the 20th, Polaris Sewon announced that the final subscription rate for the general public offering of unsubscribed shares conducted over two days from the 18th to 19th reached 313.41 to 1. Approximately 1.8 billion KRW worth of unsubscribed shares attracted 556.7 billion KRW in investment funds.
Earlier, Polaris Sewon completed about 88.72% of fundraising through a paid-in capital increase subscription targeting existing shareholders conducted on the 13th and 14th. The issue price of the new shares is 1,575 KRW, with refunds and payment dates scheduled for the 21st. The new shares will be listed on August 3rd.
The total raised funds of 15.75 billion KRW will be used as 6.75 billion KRW for operating funds and 9 billion KRW for acquiring securities of other companies. The purpose is to quickly respond to order volumes through raw material purchases and facility investments, and to strengthen control over the subsidiary Polaris Uno.
A Polaris Sewon official stated, “With active participation from the largest shareholder Polaris Office, high subscription rates were recorded in both the existing shareholder subscription and the general public offering subscription,” adding, “We believe this paid-in capital increase was seen as an opportunity for low-price buying due to the stock price discount.”
He continued, “We will prove corporate value through the company’s growth and various shareholder-friendly policies,” emphasizing, “We will also expand business synergy with the subsidiary Polaris Uno, which has a sound financial structure.”
Meanwhile, Polaris Sewon supplies automotive air conditioning parts to Hyundai Motor, Kia, GM (General Motors), Ford, Tesla, Lucid Motors, Rivian, and others through its customers. It stated that orders for electric vehicle parts are increasing significantly due to the electrification strategies and electric vehicle launch competition among global automakers.
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