Hyundai Motor Securities Proposes 200 Billion KRW Capital Increase, Passes FSC Review

Rights Offering Price to Be Finalized on February 21
Subscription Schedule Begins on February 26
Capital Market Competitiveness Expected to Strengthen Upon Successful Rights Offering

Hyundai Motor Securities' large-scale rights offering plan has passed the Financial Supervisory Service's hurdle.

According to the Financial Supervisory Service's electronic disclosure system on the 10th, the amended securities registration statement submitted by Hyundai Motor Securities on the 24th of last month took effect on this day. Since November last year, Hyundai Motor Securities has been promoting a rights offering worth 200 billion KRW through shareholder allocation. Through the rights offering, the company plans to strengthen its capital competitiveness and secure future growth engines by ▲introducing a next-generation ledger system ▲repaying redeemable convertible preferred stocks (RCPS) and short-term borrowings.

Previously, the Financial Supervisory Service had requested amendments to the securities registration statement last month, putting it in a suspended state. Hyundai Motor Securities subsequently submitted a significantly revised amended registration statement and finalized the securities registration statement by making additional detailed corrections on the 9th. In the amended registration statement, Hyundai Motor Securities mentioned the recent decline in profitability due to the increase in defaults in the real estate project financing (PF) market and the setting of allowance for doubtful accounts, emphasizing that this rights offering is a key measure to restore the company's financial stability and prevent credit rating downgrades.

The issuance price for the rights offering is scheduled to be finalized on February 21, with subscription for existing shareholders taking place from February 26 to 27, and public subscription from March 4 to 5. Hyundai Motor Securities expects that if this rights offering is successfully completed, it will significantly enhance its competitiveness in the capital market.