NH Investment & Securities Reports ELS 71st Issuance Results with 18.85% Subscription Rate Indicating Weak Demand
NH Investment & Securities reported the issuance results of its N2 Retirement Pension ELS 71st Equity-Linked Securities. Only KRW 5,656 million out of the planned KRW 3 billion was raised, representing a subscription rate of 18.85%, indicating lower investor demand than expected.
The proceeds will be used for hedging underlying assets, and issuance costs were minimal at KRW 28,280 for the issuance levy. As these are equity-linked securities, there is no dilution to existing shares.
The unsubscribed portion was not filled, and the settlement was completed as partial payment. Allocations were made proportionally to subscription amounts and notified individually.
[AI Summary]NH Investment & Securities' ELS 71st issue recorded a low subscription rate, but as equity-linked securities, there is no dilution for existing shareholders. Funds are allocated for hedging purposes, focusing on repayment stability rather than profit generation. Weak market demand may reflect cautious investor sentiment, but the issuer's credit profile remains unaffected.