Meritz Securities carried out a rights offering worth 500 billion won, laying the groundwork to leap to a comprehensive investment firm. With this capital increase, equity capital rises to the high 7 trillion won range, prompting assessments that it is a step closer to designation as a comprehensive investment firm, which requires equity capital of at least 8 trillion won.
Meritz Securities said on the 25th that it decided on a third-party allotment rights offering. It will issue 38,750,679 convertible preferred shares (CPS) at a conversion price of 12,903 won per share. The total size is 500 billion won.
The allottee is Nexrise No. 1, a special purpose company (SPC). Once payment is completed on Feb. 11, the new share certificates will be delivered on the 26th of the same month. The issued shares will be subject to a one-year lockup.
Specifically, Meritz Securities issues the CPS, and the SPC securitizes it. Meritz Financial Group, the largest shareholder, provided a put option (early redemption option) in the process to enhance creditworthiness.
Meritz Securities said the rights offering was decided to bolster capital and secure investment capacity. After the offering, Meritz Securities' equity capital will increase from 7.1917 trillion won to 7.6917 trillion won.