Mirae Asset Securities Issues Additional ELW on Hyundai E&C and LIG Nex1 Worth KRW 2 Billion; No Capital Change but High-Risk Product Caution Advised
Mirae Asset Securities, a top-tier securities firm with an AA credit rating, has issued additional ELW series M860 and M861 worth approximately KRW 2 billion based on Hyundai E&C and LIG Nex1 common stocks.
The issuance aims to raise funds for hedging underlying assets, involving no capital change or dilution of existing shareholders.
These ELWs are high-risk products where investors may lose their entire principal if the final valuation price is at or below the strike price.
The implied volatility used for pricing is set lower than historical volatility for both issues, suggesting potential undervaluation relative to theoretical price.
Underlying companies Hyundai E&C and LIG Nex1 have announced cash dividend decisions, continuing shareholder return policies.
As of end-May 2026, Mirae Asset Securities held 508 ELW issues worth about KRW 510.3 billion outstanding, with a credit equivalent amount of KRW 920.8 billion.
[AI Summary]This additional ELW issuance is a routine business activity with a neutral direct impact on shareholder value, but investors should note the high-risk product structure and lower implied volatility compared to historical levels. The dividend decisions of the underlying companies are positive factors.