Hyundai Motor Securities "Resolves 200 Billion KRW Paid-in Capital Increase to Secure Future Growth Engines"

Hyundai Motor Securities announced on the 27th that it has resolved a paid-in capital increase of 200 billion KRW to secure future growth engines.

According to the Financial Supervisory Service's electronic disclosure system, Hyundai Motor Securities resolved a paid-in capital increase of 200 billion KRW at the board meeting held the previous day. The method of the capital increase will proceed through a rights offering to existing shareholders followed by a public offering of unsubscribed shares. For every one existing share, 0.699 new shares will be allocated, and 30,120,482 new shares are expected to be issued. The planned issue price is 6,640 KRW, applying a 15% discount rate. Additionally, 10% of the total issued shares, amounting to 3,012,048 shares, have been allocated to the employee stock ownership association, and these allocated shares will be subject to a one-year lock-up period.

The subscription period for existing shareholders is from February 12 to 13, 2025. If unsubscribed shares occur, a subscription will be conducted targeting general investors, and any remaining unsubscribed shares will be underwritten by the lead manager, NH Investment & Securities. The final issue price will be confirmed on February 7, 2025.

Among affiliated company shareholders, Hyundai Motor holds 25.43%, Hyundai Mobis holds 15.71%, and Kia holds 4.54% of the shares. Hyundai Motor, the largest shareholder, announced that it will subscribe to 100% of the allocated shares through the board resolution on the same day. Kia and Hyundai Mobis will decide their final participation and subscription quantities based on future board meeting outcomes.

The company plans to utilize the funds secured through this paid-in capital increase for securing future growth engines such as next-generation system development. With the start of interest rate cuts, it aims to strengthen competitiveness in retail and corporate finance (IB) by accelerating digital transformation and expanding equity capital, thereby enhancing profitability and corporate value.

Baek Hyung-geun, CEO of Hyundai Motor Securities, stated, “We expect the company to increase its value in the mid to long term based on this capital increase,” and added, “We will strive to make Hyundai Motor Securities a ‘game changer’ in the securities industry.”