Kyobo Securities to Raise KRW 300 Billion Through RCPS Issuance, Strengthen Core Businesses (Comprehensive)

Kyobo Securities will raise KRW 300 billion in capital by issuing redeemable convertible preferred shares (RCPS). The funds will be used as working capital to strengthen the competitiveness of its existing businesses and for other purposes.

Kyobo Securities announced on October 22 that it had decided to carry out two third-party allotment capital increases to raise a total of KRW 300 billion, including for working capital.

In the first capital increase, worth KRW 200 billion, the company will issue 7,560,291 new shares at KRW 26,454 per share. The shares will be allotted to third parties, including 3,402,132 shares to Trini KS First Co., Ltd. and 1,890,073 shares to Felix KRC Third Co., Ltd.

In the additional capital increase, worth KRW 100 billion, Kyobo Securities will issue 3,780,145 new shares at the same price. Of these, 1,890,073 shares will be allotted to Felix KRC Second Co., Ltd., while Korea Investment & Securities will receive 661,525 shares.

The capital increases will be carried out by issuing two types of RCPS with different dates on which they can first be redeemed. The initial preferred dividend rate for the KRW 200 billion tranche will be 5.993% per year, and the shares will be redeemable starting October 30, 2029, two years after issuance.

The initial preferred dividend rate for the KRW 100 billion tranche will be 5.814% per year. It will be redeemable starting October 30, 2028, one year earlier.

For both types of preferred shares, the preferred dividend rate will rise by 1.5 percentage points after the initial redemption date. It will then increase by an additional 1.5 percentage points each year.

Institutional investors will also participate. Korea Investment & Securities will invest a total of KRW 35 billion in the two capital increases, while Hyundai Motor Securities will invest KRW 10 billion in the KRW 200 billion capital increase. The remaining KRW 255 billion will be allotted to special-purpose companies (SPCs).

The preferred shares to be issued will have no voting rights and will be subject to a one-year lockup. The payment date for the share subscriptions is October 30.

Kyobo Securities plans to use the capital increase to strengthen the competitiveness of its existing businesses while expanding opportunities in new businesses.

A Kyobo Securities official said, "This RCPS issuance is not simply about growing the scale of the company. It is intended to strengthen the capabilities of our core businesses and expand opportunities in new businesses by increasing our equity capital. We plan to build a virtuous cycle in which improved net income and a stronger financial structure lead to more active business operations, while securing sustainable growth drivers."

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