T'way Air said on the 11th that Sono International, its largest shareholder, will subscribe 100% to all 26,850,000 common shares allotted to it in the rights offering for existing shareholders. Based on the final issue price, the offering amounts to 25.6 billion won.
Subscriptions for T'way Air's rights offering will run from today through the 12th for the employee stock ownership association and existing shareholders. A total of 76,985,450 shares will be issued, and any forfeited shares (remaining shares from nonparticipation or nonpayment in the rights offering) will be offered to the public.
The shares to be subscribed by Sono International account for 34.87% of all newly issued shares. T'way Air said the full subscription by the largest shareholder demonstrates firm confidence in T'way Air's mid- to long-term vision and future growth value.
If T'way Air successfully completes the rights offering, it will secure a total of 73.3 billion won. The company plans to use the funds to introduce additional new aircraft such as the A330-900neo and to continue expanding long-haul routes, including to Europe, North America and Australia.
In addition, by expanding capital, it plans to lower the liability ratio and further strengthen financial soundness, using this as an opportunity to resolve uncertainty in parts of the market and to raise corporate credit ratings and investor confidence.
A T'way Air official said, "Through this capital expansion, we will strengthen T'way Air's financial stability and lay the groundwork for a greater leap forward as a global airline."