Korean Air (KE, Seoul Incheon) is looking to raise KWR500 billion (USD455 million) in fresh capital through the sale of 14,164,306 ordinary shares at KWR35,300 won a piece, a regulatory filing with the KOSPI index said. After the finalization of their issue price on March 9, the new shares will be listed on the main bourse on April 1, pushing the number of Korean Air's shares to nearly 74 million.
"This will help us increase our capital, reduce our debt and lower the debt ratio by 200 percentage points, which would save about KWR20 billion in annual interest payments," it said.
In December 2013, the South Korean carrier sold off assets including a 28% stake in S-Oil owned by its affiliate, Hanjin Energy, thirteen B747-400s and B777-200s, in a bid to raise KRW3.5trillion (USD3.3billion) in much needed liquidity.
