Hanwha Aerospace announced a capital increase of 3.6 trillion won, causing the stock price to plummet in after-hours trading following the regular market close.
Hanwha Aerospace shares were traded at 673,000 won in after-hours trading at 5:10 p.m. on the 20th. This is 6.79% (49,000 won) lower than the regular market closing price of 722,000 won.
Hanwha Aerospace's stock price fell by 4.5% (34,000 won) in the regular market, but showed a slight increase in after-hours trading. However, after Hanwha Aerospace disclosed its capital increase plan at 4:49 p.m., it turned bearish again.
Hanwha Aerospace will conduct the capital increase through a public offering of unallocated shares after allocating to shareholders. 20% of the new share issuance will be allocated to the employee stock ownership association. Existing shareholders can subscribe to about 1 share for every 10 shares they hold.
The estimated issue price of the new shares, applying a discount rate of 15%, is 605,000 won. From April 24 to May 29, the first and second issue prices will be determined based on the trading volume and transaction value, and the new share issue price will be finalized. After the subscription process, the new shares are expected to start trading from June 24.
Hanwha Aerospace plans to use 1.6 trillion won of the funds raised through the capital increase for establishing local overseas factories and securing equity for defense cooperation. 900 billion won will be allocated to domestic business sites, 800 billion won for securing production bases in the U.S. for maritime defense and shipbuilding, and 300 billion won will be invested in developing facilities for unmanned vehicle engines.
Hanwha Aerospace presented a blueprint to secure overseas production bases and grow into a global top-tier corporation with a consolidated revenue of 70 trillion won and an operating profit of 10 trillion won by 2035.