DYC Decides on ~2 Billion Won Third-Party Allotment Capital Increase... Attracts Strategic Investment from LIG Defense to Expand Defense Business

DYC resolved on May 26, 2026, to conduct a third-party allotment of 1,235,331 shares (approx. 2 billion won). The issue price is 1,619 won, a 10% discount to the reference price of 1,798 won.
All proceeds (approx. 2 billion won) will be used to participate in the capital increase of its wholly-owned subsidiary DYC Dynamics, to expand the defense metal processing business. The acquisition price was set at 14,096 won per share based on a DCF valuation by Taesung Accounting Corporation.
The new shares are fully allocated to LIG Defense & Aerospace Co., Ltd., subject to a one-year lock-up. The strategic partnership with LIG is expected to create synergies in the defense sector.
The capital increase will dilute existing shareholders by approximately 5.97%, but the funds will be deployed for subsidiary business expansion, potentially enhancing long-term enterprise value.
[AI Comprehensive Analysis]This capital increase has positive aspects such as attracting a strategic investor and investing in the defense business, but the 6% dilution and discounted issuance exert short-term downward pressure on the stock price. The key variable for future share price is whether the subsidiary's growth and cooperation with LIG translate into actual earnings improvement.