08-04-2025
Hanwha Aerospace files revised share sale plan at regulator's request
Hanwha Aerospace Co., a South Korean defense industry company, on Tuesday said it has filed a revised share sale plan to raise 2.3 trillion won ($1.56 billion) at the request of the financial regulator.
The company originally planned to raise 3.6 trillion won in capital through a stock sale but the Financial Supervisory Service asked it to submit a revised plan, citing insufficient information for investors.
To fill the gap of 1.3 trillion won, Hanwha Aerospace will issue new shares to three Hanwha Group affiliates -- Hanwha Energy Corp., Hanwha Impact Partners Inc. and Hanwha Energy Corporation Singapore Pte., the company said in a regulatory filing.
The FSS made a revision request as it had found the company's previous plan lacked in key areas; the rationale for the rights offering, communication with shareholders and the intended use of the proceeds.
Hanwha Aerospace has said the rights issue plan is part of the defense equipment firm's broader global investment plans in future growth sectors.
The proceeds will be spent to acquire strategic production bases in Europe, the Middle East, Australia and the United States as it expects more opportunities amid a rearmament push in Europe and US efforts to bolster its shipbuilding industry, the company said.
The news sent shares in Hanwha Aerospace 5.92 percent higher at 680,000 won as of 9:25 a.m., outperforming the broader Korea Stock Price Index's 1.46 percent gain.
Hanwha Aerospace stocks jumped on eased concerns over dilution of existing shareholders' stakes. (Yonhap)
