LIG Defense & Aerospace Decides on 500 Billion KRW Third-Party Allotment of Preferred Shares for Facility Investment and Capacity Expansion
LIG Defense & Aerospace has decided on a third-party allotment of approximately 500 billion KRW worth of preferred shares through a board resolution on June 25, 2026. The new shares are 876,153 non-voting registered preferred shares with an issue price of 570,676 KRW per share. The issuance is directed at K-Defense Growth No. 1 LLC, a special purpose company to be established by Dainvestment Co., Ltd. and IMM Investment Co., Ltd.
All proceeds of about 500 billion KRW will be used to build new missile system production facilities in Gumi and Gimcheon and expand existing facilities. The investment period is from 2026 to 2028, aiming to strengthen core defense capabilities and secure mid- to long-term growth engines. This facility investment is expected to expand production capacity for high-value defense products, contributing to revenue and profitability improvement.
The new preferred shares have a one-year lock-up period and carry no conversion or redemption rights; they are cumulative participating preferred shares with no voting rights. While existing common shareholders' voting power remains unaffected, the mandatory preferred dividends may impose some constraints on common dividend payouts. The issue price reflects a 30% discount from the common stock reference price to account for the unlisted nature and lack of voting rights.
[AI Summary]LIG Defense & Aerospace is raising 500 billion KRW through a preferred stock issuance to fund defense facility investments. The new shares represent about 4% of existing common shares but are non-voting, limiting dilution of shareholder value. Productive use of proceeds and absence of debt refinancing or financial deterioration concerns suggest a neutral impact on stock price.
KOSPI Filing Information
Report On Major Matters (Decision On Paid-In Capital Increase)