Public Offering Subscription Rate Reaches 227 to 1
Trust of 'General Investors' Confirmed
Hanwha Aerospace has completed a rights offering worth approximately 2.9 trillion won. This marks the largest-ever rights offering among domestic defense companies, and it is seen as securing full-scale investment resources for the company’s shift to a defense-centered business model and the establishment of global production bases.
On July 11, Hanwha Aerospace announced that the subscription rate for existing shareholders in this rights offering was 106.4%, while the public offering subscription competition rate reached 227.6 to 1. The overall subscription rate was 193.8%. A company representative stated, "The success of this rights offering demonstrates that our strategy to strengthen global defense leadership and our investment plans for sustainable growth have earned the trust of the market."
The success of this rights offering is also aligned with the group’s strategy to accelerate its business transformation. Of the approximately 2.9 trillion won raised, Hanwha Aerospace plans to invest 1.6 trillion won in securing local production bases and equity investments in defense partnerships in strategic countries such as Europe, the United States, and Australia. Another 900 billion won will be allocated to the propulsion charge (MCS) smart factory and domestic defense facilities. The remaining 300 billion won will be used to establish facilities for the development of unmanned aerial vehicle engines.
The company is particularly focused on the rearmament efforts of European countries amid the spread of global geopolitical risks. Accordingly, major investment strategies include expanding exports of core weapon systems such as the K9 self-propelled howitzer and the Cheonmu multiple rocket launcher, as well as strengthening cooperation with the North Atlantic Treaty Organization (NATO) and local defense companies. The company is also pursuing space business initiatives, including the construction of the Suncheon space assembly plant.
The share price rose 18.1%, from 722,000 won on the announcement date of the rights offering (March 20) to 853,000 won at the close of trading on July 10. Despite concerns about dilution, the share price appears to reflect expectations for performance recovery and growth. The new shares are scheduled to be listed on the Korea Exchange on July 21.
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