LS Marine Solution announced a rights issue for shareholders to build a large underwater cable laying vessel (CLV), and its stock price is weak.
LS Marine Solution's shares traded at 17,460 won on the Korea Securities Dealers Automated Quotations market at 9:10 a.m. on the 27th, down 10.1% (1,960 won) from the previous day. At the same time, shares of LS, LS Eco Energy, LS Networks, and LS ELECTRIC also showed a downward trend.
The large-scale rights issue plan appears to have frozen investor sentiment. LS Marine Solution disclosed its rights issue plan after the regular market closed the previous day. The company plans to issue 19.57 million new shares, allocate them to existing shareholders (current shareholders), and offer any unallocated shares to general investors.
0.62 new shares will be allocated for each existing share. The planned issuance price for the new shares is 14,220 won. The issuance price is expected to be finalized on July 30 after the pricing procedures of the 1st and 2nd issuances. LS Marine Solution can raise approximately 278 billion won based on the planned issuance price.
LS Marine Solution has decided to invest a total of 345.8 billion won to build a large laying vessel with a cable loading capacity of 13,000 tons. LS Marine Solution explained that a new laying vessel is needed to respond to the 'West Coast HVDC energy highway.'
The large laying vessel is expected to begin operations in the first half of 2028 after a construction period of approximately two years. LS Marine Solution presented a blueprint to cover everything from design to production and construction, in conjunction with the LS Greenlink underwater cable business site in the U.S., which will start mass production at the same time.