The capital increase of Hanwha Aerospace, which was the largest in history, has been blocked by the Financial Supervisory Service's review.
On the 27th, the Financial Supervisory Service, after reviewing the securities registration statement containing Hanwha Aerospace's capital increase plan, ordered that the statement be rewritten, citing a lack of information necessary for investors' rational judgment.
This follows Hanwha Aerospace's announcement that it would proceed with a capital increase to invest in overseas defense (1.6 trillion won), domestic defense (900 billion won), overseas shipbuilding (800 billion won), and engines for unmanned aircraft (300 billion won).
Companies like Hanwha Aerospace must pass scrutiny from financial authorities when raising funds from more than 50 people, and this process has been blocked.
The Financial Supervisory Service evaluated that, after a thorough review through face-to-face consultations of Hanwha Aerospace's securities registration statement, the disclosures regarding the necessity of the capital increase, shareholder communication processes, and intended use of the funds were insufficient. However, it did not disclose specific correction requests.
This correction request comes just five trading days after Hanwha Aerospace submitted the securities registration statement. In cases where offerings are made to non-shareholders, the review period is 10 trading days; Hanwha Aerospace's selection as a priority review target led to this early decision. Hanwha Aerospace announced it would raise 3.6 trillion won through a capital increase, which placed it on the priority review list.
Furthermore, this correction request differs from the Financial Supervisory Service's previous announcement. On the 20th, when Hanwha Aerospace submitted the securities registration statement, the Financial Supervisory Service noted that it could be positively evaluated in terms of raising funds necessary to establish a leading position in K-defense.
It was unusual for financial authorities to make such announcements immediately after a listed company submits a securities registration statement, so the market largely believed Hanwha Aerospace would pass the Financial Supervisory Service's review without issue.
This decision is believed to have been influenced by factors such as Hanwha Aerospace's consistent profitability, the fact that it used cash to liquidate shares in its subsidiaries immediately before the capital increase, and the lack of communication with shareholders prior to the increase.
The Financial Supervisory Service stated, 'If the company submits a corrected registration statement in the future, we will thoroughly examine whether the requested matters have been faithfully reflected.'
If Hanwha Aerospace does not correct and resubmit the securities registration statement within three months after receiving the correction request, the capital increase will be deemed withdrawn under the Capital Market Act.
Regarding this, a Hanwha Aerospace official stated, 'We will respond as sincerely as possible to the Financial Supervisory Service's requests.'