Seoul: South Korea's financial regulator on Thursday asked Hanwha Aerospace Co. to submit a revised filing over its plan to raise 3.6 trillion won (US$2.5 billion) in capital through a stock sale, citing insufficient information for investors.
According to Yonhap News Agency, the Financial Supervisory Service (FSS) said it found the filing by the South Korean defense equipment manufacturer lacking in key areas. These areas include the rationale for the rights offering, communication with shareholders, and the intended use of the proceeds.
The FSS emphasized that it will thoroughly assess the revised registration once it is submitted to ensure that the requested changes are fully reflected.
In a regulatory filing a week ago, Hanwha Aerospace stated that the stock sale was part of its broader global investment plans in future growth sectors. This announcement triggered a sharp decline in the company's share price due to concerns over the dilution of existing shareholders' stakes.
Market observers have pointed out that while Hanwha Aerospace's investment direction is promising, there is criticism regarding its choice of capital increase amid the company's already strong financial position.