South Korea’s financial regulator has instructed Hanwha Aerospace to submit a fresh revision of its share issuance proposal, delaying the defense contractor’s capital-raising initiative for a second time.
In a notice posted to the stock exchange on Thursday, the Financial Supervisory Service (FSS) stated that Hanwha’s most recent filing, submitted last week, included elements that could “significantly mislead investors or obstruct sound investment decisions.” The FSS has given the company three months to resubmit the plan.
The move follows Hanwha’s April 8 revision of its fundraising strategy, in which it lowered its target from 3.6 trillion won to 2.3 trillion won ($1.62 billion) after facing resistance from both investors and regulators.
Initially, Hanwha announced the equity increase to bolster its domestic and international manufacturing capabilities amid a surge in global defense orders. However, financial authorities pushed back, demanding more clarity on how the capital raise aligned with the company’s broader restructuring strategy.
The latest directive from the FSS adds further pressure on Hanwha to provide a more transparent and detailed explanation of its financing goals.
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