Announces issuance of KRW500bn in preferred stock Quick Note

研报英文原文证据摘录

Announces issuance of KRW500bn in preferred stock Quick Note

Global Markets Research

LIG D&A 079550.KS 079550 KS 26 June 2026

EQUITY: CAPITAL GOODS

RatingAnnounces issuance of KRW500bn in preferred stock Remains Buy

Target price KRW 1,200,000 RemainsQuick Note

Closing priceDilutionconcernsappearmanageable,inourview;thecompanyaimstoutilizethe 26 June 2026 KRW 735,000

proceedsasstrategicgrowthcapitalformissilecapacityandR&D.

LIG D&A to raise KRW500bn via preferred share allotment to National Growth Fund

Research Analysts

LIG Defense & Aerospace (LIG) on 26 June announced a KRW500bn third-party allotment

Korea Industrialscapital increase through the issuance of non-voting, unlisted preferred shares (link). The

Eon Hwang - NFIKnew shares will be subscribed by K-Defense Growth No.1, a project fund backed by the

eon.hwang@nomura.comNational Growth Fund’s Advanced Strategic Industry Fund and private financial

+822 3783 2318

institutions.

LIG will issue 876,153 preferred shares at KRW570,676 per share, raising approximately

KRW500bn. The scheduled payment date is 16 September 2026. EPS dilution will be

3.8% based on the number of shares issued.

Investing KRW500bn on capacity expansion and missile R&D for exports

We view the capital increase as strategically positive move, and think that dilution will be

limited as the preferred shares will not be listed in the near term. The proceeds

(approximately KRW500bn) will be used for Gumi (Fig.2) and Gimcheon (Fig.3) factory

construction, according to the company. These facilities are likely to support missile-

system production, testing, and inspection capabilities.

According to LIG D&A, the construction of Gumi factory III, which will require KRW375bn