LS Marine Solution, which is engaged in underwater and underground cable construction, announced its plans for a shareholder allocation capital increase, leading to a sharp drop in stock prices during the after-market (after-market 3:40 p.m. to 8 p.m.) on the 26th.
LS Marine Solution's stock traded at 18,260 won in the after-market at 4:47 p.m. on that day, which is 8.24% (1,640 won) lower than the previous day's closing price. It also fell 6% (1,160 won) compared to that day's closing price.
LS Marine Solution disclosed its capital increase plan after the regular market closed that day. It plans to issue 19.57 million new shares allocated to existing shareholders (old shareholders) and will offer any unallocated shares to general investors. For each existing share, 0.62 new shares are allocated.
The expected issuing price for the new shares is 14,220 won. After undergoing the primary and secondary pricing procedures, the issuing price is expected to be finalized by July 30.
Through this capital increase, LS Marine Solution aims to raise approximately 278 billion won based on the planned issuing price to build a large underwater cable laying vessel (CLV). The construction cost for the CLV has been set at 345.8 billion won.
LS Marine Solution noted, "Global underwater power cable projects are becoming larger and longer range," adding, "We aim to expand into the large-scale offshore wind and offshore grid markets by investing in the construction of large CLVs with a cable capacity of over 10,000 tons (t)."