Mirae Asset Daewoo Co. Ltd. will issue 130,842,000 preferred shares to raise about 700 billion South Korean won, increasing its equity capital to more than 8 trillion won, The Chosun Ilbo reported Dec. 15.
The company is already the largest South Korean investment bank by capital, and the latest capital increase will pave the way for a wider range of investment banking activity.
Mirae Asset Daewoo's board decided to issue 80% of the new prefered shares to existing shareholders, with the remaining 20% going to to employee shareholders.
The expanded capital base will also facilitate the company's continuing pursuit of global M&A, according to the report.
Mirae Asset Daewoo is part of Mirae Asset Financial Group, which is reportedly under investigation by the Fair Trade Commission over possible violations rules governing inside transactions among its affiliates to benefit family owners, Pulse reported Dec. 15.
As a result of the FTC probe, a regulatory review to approve the group's new short-term fundraising business has been postponed.
