LG Display looks to raise $971 mn in rights offering for OLED business

LG Display Co., the world’s leading manufacturer of organic light-emitting diode (OLED) panels, said on Monday it will raise 1.29 trillion won ($971.3 million) through a rights offering in South Korea to fund its operations, facilities and debt repayment.

LG Corp., the display maker’s largest shareholder, will subscribe to 36% of the offering. The new shares will be listed on March 26, after subscriptions for existing stakeholders and new investors go through next week.

The company said it will sell 142.2 million new shares at 9,090 won apiece, about 9.7% less than the price initially planned last December.

The new share price was determined based on the average price for three trading days before the existing shareholders’ subscription. LG Display's stock dropped to the 11,000 won level in late February, about 15% down from the beginning of the year.   

The Korean display manufacturer will allocate 37.4% of the raised funds to its business operation, 32.2% to facilities and 30.4% to debt repayment, according to its regulatory filings.

With the proceedings, the loss-making company aims to improve its profitability by raising large OLED panel shipments by 20% this year and expanding its presence in the global premium TV market. It will also continue to increase medium OLED panel production based on contracts with global clients.

The display maker posted 2.51 trillion won in operating losses last year, 20.4% more than the shortfall the year earlier. It logged 21.33 trillion won in revenue last year, down 18.4% on-year.

The company’s shares fell 2.46% to close at 11,100 won on Monday, underperforming the main Kospi’s 1.21% rise.

Write to Seok-Cheol Choi at dolsoi@hankyung.com


Jihyun Kim edited this article.