South Korea watchdog orders Hanwha Aerospace to resubmit share issue plan
A K-9 self propelled howitzer is seen at Hanwha Aerospace factory in Changwon, South Korea, on Mar 16, 2023. (Photo: REUTERS/Kim Hong-Ji)
SEOUL: South Korea's financial watchdog ordered on Thursday (Apr 17) Hanwha Aerospace to submit another revision to its share issue plan, pushing back on the capital raising plans of the country's largest defence contractor for a second time.
The Financial Supervisory Service said in a stock exchange regulatory notice that Hanwha's filing last week contained elements that could potentially cause significant investor misunderstanding or hinder investment decisions. The watchdog ordered a refiling within three months.
On Apr 8, Hanwha filed a revised plan of its fundraising, cutting the amount to 2.3 trillion won (US$1.62 billion) after investor and regulatory pushback.
Hanwha had earlier announced an equity capital increase worth 3.6 trillion won that it said was intended to build up overseas and domestic production to meet growing international orders.
The financial regulator subsequently ordered a revision of the plan saying the company needed to better explain how the equity issue plan fitted with a broader plan to restructure the company.
