Hanyang Securities will proceed with a rights offering of 50 billion won targeting its largest shareholder, KCGI. The plan is to enter new businesses, including over-the-counter derivatives, to secure mid- to long-term growth engines.
Hanyang Securities disclosed on the 25th that it resolved a third-party allotment rights offering to issue 2,380,952 common shares. The recipient of the rights offering is the largest shareholder, KCGI Private Equity Fund II (KCGI PEF). The issue price is 21,000 won per share, for total proceeds of about 50 billion won.
The issue price is 12.9% higher than the reference price of 18,605 won. Rights offerings are typically priced at a discount, but the company said it chose a premium issuance to reduce dilution of existing shareholders' equity value. The new shares acquired by KCGI PEF will be subject to a one-year lockup from the deposit date.
Hanyang Securities plans to use the funds to push new businesses, including over-the-counter derivatives. A KCGI official said, "Through this offering, Hanyang Securities has met the capital requirements needed for new businesses such as over-the-counter derivatives," adding, "We will support the company so it can pursue management stability and new businesses on a strengthened financial base."
The company said it will maintain its shareholder return policy. In a value-up disclosure in Mar., the company said it would pay dividends of at least 1,600 won per common share, with a payout ratio of 30% or more.
Meanwhile, the payment date for the offering is Jul. 8, and the scheduled listing date for the new shares is Jul. 20.