Hanyang Securities to Raise 50 Billion Won Through New Share Issuance

Hanyang Securities is set to raise 50 billion won through a new share issuance aimed at expanding its business and strengthening its financial stability.
 
On June 25, Hanyang Securities announced that its board of directors approved the issuance of 2,389,952 common shares through a third-party allocation. The shares will be priced at 21,000 won each, totaling approximately 50 billion won.
 
The funds raised will be used entirely for operational purposes. The company expects to improve key financial indicators, including its net capital ratio (NCR), through this capital expansion. Hanyang Securities plans to utilize the increased capital for entering new business areas, including over-the-counter derivatives. The firm is enhancing its competitiveness following its acquisition by KCGI.

Notably, this capital increase will be conducted at a premium rather than the typical discount, according to Hanyang Securities. The KCGI private equity fund will purchase the new shares at a price above the benchmark, minimizing the dilution of existing shareholders' equity while demonstrating a commitment to responsible management as a major shareholder.

A representative from Hanyang Securities stated, "This capital expansion is a strategic investment to reliably pursue the company's long-term growth strategy," adding, "The participation of the largest shareholder in the capital increase reflects a commitment to responsible management based on trust in the company's growth and corporate value."

Meanwhile, amid a recent surge in the stock market, competition for capital expansion continues in the securities industry. NH Investment & Securities has decided to conduct a 400 billion won third-party allocation capital increase targeting its largest shareholder, NH Nonghyup Financial Group. The funds will be used to expand its integrated investment account (IMA) business, corporate finance, and venture capital investments. Woori Investment & Securities also received 1 trillion won from Woori Financial Group in May, increasing its equity capital to 2.2 trillion won through a 1 trillion won capital increase.