NH Investment & Securities Decides on 400 Billion Won Third-Party Allotment to Largest Shareholder Nonghyup Financial Group for Operational Funds and Financial Structure Improvement

NH Investment & Securities resolved on June 2, 2026 to conduct a third-party allotment capital increase of 12,861,736 common shares to its largest shareholder, Nonghyup Financial Group, to secure approximately 400 billion won in operating funds.
The issue price is 31,100 won, a slight premium of 0.03% over the reference price of 31,090 won and almost identical to the previous day's closing price of 31,200 won, indicating minimal price discrepancy.
Proceeds will be used for retail credit provision (200 billion won) and IB corporate loans and acquisition financing (200 billion won), expected to enhance business competitiveness and improve financial structure.
New shares are subject to a one-year mandatory lock-up from listing, reducing short-term selling pressure (overhang risk).
The dilution ratio is modest at approximately 3.6%, limiting the impact on existing shareholders' value, while the capital injection from the largest shareholder strengthens the company's equity base and financial soundness.
[AI Summary]NH Investment & Securities conducts a 400 billion won capital increase via third-party allotment to its largest shareholder Nonghyup Financial Group at near-market price. Although a slight dilution of about 3.6% occurs, the funds are allocated to revenue-generating operating assets (retail credit, IB loans), and the one-year lock-up mitigates overhang risk. Thus, the negative impact on shareholder value is limited, and the move is seen as a neutral-to-positive signal.