The Korea Securities Dealers Automated Quotations (KOSDAQ) listed company HENG SHENG HOLDING GROUP announced on the 17th that it has completed a 6 billion won third-party allocation capital increase. Previously, HENG SHENG HOLDING GROUP had disclosed on the 8th that it would carry out a capital increase targeting its owner's second generation, Director HUI HONG YUAN, and Hong Kong investors.
The price of the new shares issued in this third-party allocation capital increase was set at 250 won, which is a 9.7% premium over the benchmark stock price. The listing date for the new shares is May 9. Director HUI HONG YUAN and financial investors (FIs) have assured a one-year lock-up.
The largest shareholder of HENG SHENG HOLDING GROUP will change from the current CEO HUI MAN KIT to Director HUI HONG YUAN. Director HUI HONG YUAN holds a 16.45% equity stake, while his father, CEO HUI MAN KIT, holds 10.06%.
HENG SHENG HOLDING GROUP plans to use the funds raised this time to strengthen competitiveness in the cosmetics business. The plan is to accelerate penetration into the Chinese market by acquiring small and medium-sized South Korean cosmetics brands and expanding the product line.
An official from HENG SHENG HOLDING GROUP said, "By participating in this capital increase at a premium price, Director HUI HONG YUAN has demonstrated a commitment to responsible management and laid the groundwork for the expansion of new business. Under the responsible leadership of the owner's second generation, we will work harder to enhance corporate value."