LIG Defense&Aerospace (LIG D&A) decided on a rights offering worth 500 billion won, and the stock was weak in early trading. The decline is seen as reflecting concerns about dilution of share value from the large fundraising.
As of 10:09 a.m. on the 26th, LIG D&A was trading on the main bourse at 731,000 won, down 44,000 won (5.68%) from the previous session.
LIG D&A disclosed it will conduct a third-party allotment rights offering of about 500 billion won to raise funds for facility investment on the day. It will issue 876,153 new shares at 570,676 won per share, in the form of unlisted preferred shares without voting rights. The allottees are the Advanced Strategic Industry Fund of the Public Growth Fund and a special purpose company (SPC) funded by the private financial sector, "KD Defense Growth No. 1 LLC."
The company plans to invest the funds to build new production facilities in Gumi and Gimcheon, North Gyeongsang, by 2028. In Gumi, it will establish "Gumi House 3," a system, inspection, and testing shop; in Gimcheon, it will newly build "Gimcheon House 2" for guided missile and missile system production and testing, while also expanding existing production facilities.
The investment is aimed at expanding production capacity to meet growing global defense demand. The Public Growth Fund is a public-private policy finance program created to foster advanced strategic industries, and LIG D&A was selected as an investment target in recognition of its growth potential and industry ripple effects.