HJ Shipbuilding & Construction to Raise 200 Billion Won Through Capital Increase

To Be Allocated to Largest Shareholder Ecoprime Marine Pacific
Improved Financial Structure to Expand Global Order Capacity

HJ Shipbuilding & Construction announced on the 12th that it has decided to proceed with a third-party allotment capital increase worth approximately 200 billion won.

The third-party allotment will be allocated to Ecoprime Marine Pacific, the largest shareholder holding a 56.59% stake.

Accordingly, 7,028,394 new shares will be issued at 28,456 won per share.

HJ Shipbuilding & Construction explained that this decision was made to raise funds for strengthening its mid- to long-term business competitiveness, including improving its financial structure and expanding global orders.

As a result of this capital increase, the company's debt ratio will decrease from 565% (as of the second quarter) to 350%.

A lower debt ratio increases the limit for refund guarantees (RG) on advance payments, which in turn enhances the company’s capacity to secure future shipbuilding orders.

HJ Shipbuilding & Construction is also preparing to enter the maintenance, repair, and overhaul (MRO) market by continuing discussions with the US Naval Supply Systems Command to sign a Maintenance, Repair, and Overhaul Agreement (MSRA), a qualification required for US Navy ship maintenance.

After completing the on-site inspection scheduled for the end of this month and signing the agreement, the company plans to actively participate in order bidding.

It is reported that part of the funds raised through the capital increase will be used to upgrade various equipment and facilities required for MRO operations.

youngkyu@yna.co.kr