Korean Air (KE, Seoul Incheon) has raised its capital by KRW450 billion (USD390 million) after a successful rights offering was subscribed by 96.42%. A KRX disclosure states the remaining rights will be re-offered to subscribers, while 787,547 shares will be offered to the general public.
The carrier announced the move back in January in a bid to lower its debt-to-equity ratio and save KRW18 billion annually in interest. It also hopes to use the extra capital for short-term liabilities.
Just over 22 million shares were issued, with the airline's Employers' Stock Ownership Association taking about 65% (2,895,329 shares) of the allocation.
Korean Air suffered a net loss of KWR556.9 billion in 2016, but News Way reports that KB Securities research speculates the carrier is on track for a net profit of KWR317.9 billion this year. This will be achieved via a reduction in operating costs through a program of fleet renewal and route network rationalisation.
The stocks will be listed on March 28.
