Hanwha Aerospace drops on $2.5 billion capital raise plan

Hanwha Aerospace

21/03/2025 24:42

** Shares of South Korean defence firm Hanwha Aerospace 012450.KS drop as much as 15%, set for their biggest daily loss since March 19, 2020, if current trend holds

** Hanwha Aerospace plans an equity capital increase worth 3.6 trillion won ($2.5 billion) to build up overseas and domestic production to meet growing international demand

** "Hanwha's blueprint to become a global top-tier in defence and shipbuilding makes sense, but uncertainty and potential risks are still concerning as Europe's defence spending boost is likely for domestic expenditure to support economic growth," says DS Investment & Securities

** Market watchdog says in a rare statement it will provide support for Hanwha's share issuance plan to proceed in a swift manner, praising its plan

** Hanwha Aerospace trades down 12.6% at 630,000 won per share, as of 0029 GMT, compared with a provisional price of 605,000 won for new shares, while the broader KOSPI market .KS11 falls 0.4%

 (Reporting by Jihoon Lee)

 ((jihoon.lee@thomsonreuters.com))