SG Sees 96% Subscription Rate in Rights Offering... Scaling Up Metropolitan and Overseas Production Bases

Asphalt concrete specialist SG (255220) reported that the subscription rate for existing shareholders in its ongoing rights offering has exceeded 96%. SG plans to use the funds secured through this rights issue to expand production bases in the northern Gyeonggi region and other metropolitan areas, as well as to invest in overseas road infrastructure projects in countries like Indonesia and Ukraine, thereby strengthening its foundation for growth.

On September 7, SG announced that during the two-day subscription period for existing shareholders, held from September 3 to 4, 39,497,470 shares out of a total offering of 41 million shares were subscribed. This equates to a subscription rate by existing shareholders of 96.34%.

The remaining unsubscribed shares from this process will be made available to the public through a general offering from September 8 to 9.

SG stated that the funds raised from this rights issue will be used to expand domestic and overseas production bases and to formally kick-start new business operations.

In Korea, SG is pursuing the acquisition of an asphalt concrete production facility in the northern Gyeonggi region. By expanding its production base, which is currently centered around Seoul and Incheon, into northern Gyeonggi, the company aims to strengthen its supply capacity throughout the entire metropolitan area.

The company expects that with the addition of these production facilities, it will improve its accessibility to major demand sources within the region while also being able to respond more flexibly to demand variations by location.

SG is also accelerating its overseas business expansion. The company plans to establish a joint venture (JV) in Indonesia with POSCO INTERNATIONAL, securing a local production base. Through establishing this local foundation, SG intends to broaden its business portfolio in the overseas road infrastructure market.

SG is also pursuing business opportunities in Ukraine. While preparing to fulfill contracts related to local projects, SG is moving forward with its entry into the overseas road infrastructure market.

According to the company, this rights issue is not simply aimed at strengthening its balance sheet but is focused on securing funds for expanding business operations both domestically and internationally. SG aims to increase its supply capacity in the metropolitan area and to secure local production bases overseas, thereby laying a broader foundation for future revenue and profit generation.

An SG representative stated, "This rights issue is part of our efforts to secure the growth foundation necessary to turn our domestic and international business plans into actual revenue and profit. Based on an expanded business platform, we will achieve both structural growth and improved profitability."

SG intends to allocate the funds secured through this rights offering to expanding its production base in northern Gyeonggi, establishing the joint venture in Indonesia, and advancing its business in Ukraine. Through these investments in domestic and overseas growth projects, the company seeks to grow its business scale and profitability simultaneously.

This content was produced with the assistance of AI translation services.