SG Successfully Completes Rights Offering, Secures 37.4 Billion Won to Expand Domestic and Overseas Operations

SG, a specialist company in asphalt concrete (Ascon), has successfully completed its rights offering and secured funding of 37.4 billion won. The company plans to use the funds to expand its domestic production bases and increase investments in overseas projects, including Indonesia.

SG announced on September 10 that it recorded a subscription competition ratio of 441.64 to 1 in the public offering of forfeited shares, which took place on September 8 and 9. In the previous subscription for existing shareholders, held on September 3 and 4, 96.34% of the new shares were subscribed.

Following the strong participation from existing shareholders and a high competition ratio in the public offering of forfeited shares, SG has successfully secured a total of 37.4 billion won in funds. This rights offering will issue a total of 41 million new shares. The payment date is set for September 11, and the new shares are scheduled to be listed on September 29.

SG plans to utilize the procured funds to expand its Ascon production bases in the metropolitan area, invest in local operations in Indonesia, secure raw materials, and improve its financial structure.

In Korea, the company will secure additional production bases within the metropolitan area to expand the regions where Ascon can be supplied and broaden the scope of its business. Since the quality and cost-effectiveness of Ascon are affected by transportation distance, SG’s strategy is to secure production bases close to major demand centers to strengthen its supply competitiveness.

For its overseas operations, SG is pursuing the establishment of a local production base and participation in road infrastructure projects in Indonesia. The company aims to create a local production foothold to secure new revenue sources and expand its overseas business in connection with road infrastructure development projects.

SG plans to use the rights offering as an opportunity to enhance the competitiveness of its existing Ascon business while diversifying its domestic and overseas business portfolio. A portion of the funds will also be invested in securing raw materials and improving its financial structure to establish a stable business foundation.

An SG representative stated, "With the completion of both the existing shareholders' subscription and the public offering, the rights offering funding process is now effectively complete. We will allocate the secured funds to the planned growth projects without delay, strengthening our domestic business competitiveness and accelerating performance in our overseas operations."

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