Seoul, South Korea – Hyundai Motor Securities has successfully obtained regulatory approval for its planned 200 billion won ($150 million) capital increase. The company announced on January 10th that the effective date of the amended securities registration statement, which was filed on December 24th, is now in effect.
Initially announced on November 27th, the capital increase was intended to fund the construction of a next-generation system and improve liquidity through cash flow enhancement. However, the Financial Services Commission (FSC) requested amendments to the registration statement last month, temporarily halting the process.
In response to the FSC's request, Hyundai Motor Securities submitted an amended registration statement on December 24th and made additional voluntary corrections on January 9th.
In the amended statement, the company disclosed that "due to the increase in vacancy rates in the global commercial real estate market following the COVID-19 pandemic, valuation losses have occurred, resulting in a decrease in the book value relative to the investment amount as of the end of September last year."
Regarding the project finance (PF) situation, the company assessed, "Although the proportion of bridge loans in the total domestic real estate exposure is not high at 27.3%, considering that the combined proportion of junior and subordinated claims for PF and bridge loans is 92.0%, the risk of contingent liabilities is high."
To protect shareholder rights in the capital increase, the company added, "We have directly listened to the opinions of small shareholders by holding meetings with them and the CEO, and have provided opportunities to transparently convey the necessity and expected effects of the capital increase."
The final issuance price for the capital increase will be determined on February 21st. Subscriptions for existing shareholders will take place from February 26th to 27th, followed by a public offering from March 4th to 5th.
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