Air Busan (BX, Busan) has branded its capital increase a “success” as shareholders such as Asiana Airlines (OZ, Seoul Incheon), which holds the biggest stake, and the municipality of Busan bought stocks to raise about KRW227.1 billion (USD193 million), the low-cost carrier announced in a regulatory filing.

The subscription rate exceeded 100% (105.4%), with 117.93 million common shares subscribed to, more than the 111.85 million shares initially intended for issue, although the price per share was lower than projected at KRW2,030 (USD1.72) rather than KRW2,235 (USD1.90), according to the September 24 disclosure.

Air Busan confirmed that because it had already raised the funds it needed, proceeds that will be used to finance its operations, the issuance would end early without a subsequent separate offering to the public.

Air Busan, based in the southeast of the Korean peninsula, commented that “the success of the capital increase was well-received in the region, including the participation of Asiana Airlines, the largest shareholder, and the City of Busan, and appears to reflect expectations for the recovery of the air travel market from the coronavirus.”

Chief executive Ahn Byung-seok said he was positive that “through this capital increase we can overcome the current crisis and look forward to a speedy recovery.”

After the stock acquisition, Asiana’s stake in the carrier will rise to about 40%. The expected date for the listing of the new shares is October 15.