Daishin Securities Raises 230 Billion Won Through RCPS Issuance... Surpasses 3 Trillion Won in Equity Capital

Daishin Securities is issuing redeemable convertible preferred shares worth 230 billion KRW.

On the 21st, Daishin Securities announced that it decided to conduct a paid-in capital increase by issuing 4,372,618 redeemable convertible preferred shares (RCPS) to raise 230 billion KRW in operating funds. Yuanta Securities, Shinhan Investment Corp., and KB Securities are participating in the paid-in capital increase.

After the issuance of RCPS, Daishin Securities' equity capital will exceed 3 trillion KRW. RCPS can be converted into common shares only under certain conditions and is known as a method to expand capital while minimizing dilution of existing shareholders' equity value.

Daishin Securities explained, "This decision was made to establish an investment foundation for future growth, increasing capital without damaging shareholder value."

Daishin Securities is preparing to be designated as a comprehensive financial investment business operator (jongtu-sa) and has met the requirement of "separate equity capital of 3 trillion KRW," which is the standard to apply for designation to the Financial Services Commission.

Once designated as a jongtu-sa, the corporate credit extension limit will increase from 100% to 200% of equity capital. It will also be able to provide prime brokerage services (PBS), such as lending funds to hedge funds or offering consulting services.

Daishin Securities stated that the sale of its headquarters building, which was being pursued to expand equity capital, will continue regardless of the paid-in capital increase.