Hanwha Aerospace Announces First Rights Offering Issue Price Set at 684,000 Won per Share

First Issue Price for Rights Offering Set at 684,000 Won per Share
Final Price to Be Determined on June 26

On May 21, Hanwha Aerospace announced that it has finalized the first issue price for its rights offering at 684,000 won per share. The total amount to be raised through this rights offering is 2,918,764,800,000 won, which is approximately 600 billion won higher than the previously disclosed amount of 2.3 trillion won announced on April 8, when the company revised its rights offering registration statement.

On the 20th, employees are monitoring the stock market and exchange rates in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Jo Yongjun

Hanwha Aerospace had initially planned to issue new shares at 539,000 won per share to raise 2.3 trillion won. However, due to strong performance in the defense sector and other areas, the company’s stock price rose, which in turn raised the reference price used to calculate the issue price, resulting in a larger total fundraising amount. Hanwha Aerospace plans to finalize the issue price based on the lower of the first and second issue prices, with the second price to be calculated on June 27.

The final confirmed price will be determined on June 26, which is three trading days before the subscription date for existing shareholders. The subscription for the employee stock ownership association will take place on July 1, followed by the subscription for existing shareholders on July 1-2, and the public offering subscription on July 4-7. The new shares are scheduled to be listed on July 21.

Previously, Hanwha Aerospace had announced a rights offering plan of 3.6 trillion won in March. However, after the Financial Supervisory Service requested an amendment to the securities registration statement, the company revised the plan on April 8, reducing the rights offering size from 3.6 trillion won to 2.3 trillion won. The company also announced that the remaining 1.3 trillion won would be raised through a third-party allotment rights offering involving three group companies, including Hanwha Energy, and executed this on April 28.

Despite Hanwha Aerospace’s revised filing, the Financial Supervisory Service requested a second amendment on April 17, citing insufficient detail and inadequate disclosure regarding the sale and purchase of Hanwha Ocean shares before and after the rights offering. Hanwha Aerospace submitted another revised filing to the Financial Supervisory Service on April 30.

Hanwha Aerospace stated that the funds secured through the rights offering will be used for investments in overseas ground defense outposts, including the establishment of overseas local plants, equity investments for defense cooperation, construction of a domestic Modular Charge System (MCS) smart factory, and equity investments in overseas shipbuilding companies.