Samsung Securities Co. Ltd. will issue 12,864,835 new shares to raise its equity capital.
According to a Dec. 20 regulatory disclosure, the broker-dealer is expected to issue shares at 27,550 won per share, raising 354.43 billion won. The new shares will be issued March 24, 2017, and listed March 27, 2017.
Coupled with a plan to sell an additional stake in itself to affiliate Samsung Life, the South Korean broker's total equity will rise to more than 4 trillion won from 3.497 trillion won at the end of September after the capital raising, a representative at Samsung Securities told S&P Global Market Intelligence.
"The selling of new shares will raise our equity, which is required to conduct more complex investment banking business under new South Korean capital market rules," the spokesman said.
In early 2016, South Korean regulators unveiled a rule aimed at boosting the country's brokerage market, which only allows big brokers with more than 3 trillion won in equity to conduct prime brokerage businesses.
As of Dec. 20, US$1 was equivalent to 1,190.59 South Korean won.