Hanwha Aerospace, a key player in South Korea’s defense and aerospace industry, saw its shares drop sharply on Thursday following the announcement of a rights issue. The company plans to raise capital to fund expansion and reduce debt, but investors reacted negatively to the potential dilution of shares.
The rights issue allows existing shareholders to purchase additional shares at a discounted price, but the market’s response highlighted concerns about the company’s growth prospects. “Investors are wary of the short-term impact on shareholder value,” said Kim Seung-hyun, a financial analyst in Seoul.
Hanwha Aerospace has been a major contributor to South Korea’s defense sector, but the recent stock plunge underscores the challenges of balancing growth with shareholder interests.
