Air Premia, South Korea's hybrid carrier, announced Tuesday it plans to raise 110 billion won ($75 million) through a new share issuance.
The airline said it decided to proceed with the capital raise to strengthen its financial structure and pursue sustainable growth amid persistent uncertainty in the aviation industry, including a high exchange rate environment and ongoing fuel price volatility.
The offering will be structured as a shareholder-priority rights issue, with the company issuing 550 million new common shares to raise approximately 110 billion won. The record date for new share allocation is Aug. 19, with the subscription period set for Sept. 18 and payment due Sept. 29.
Air Premia said it plans to use the proceeds to improve its financial structure and strengthen its business foundation, stabilizing its financial base and securing medium- to long-term growth drivers.
The capital raise is part of a financial improvement plan submitted to the Ministry of Land, Infrastructure and Transport. The company said it intends to use the strengthened capital base to establish a foundation for sustainable growth and stable management.
Air Premia currently operates long-haul routes centered on the Americas and is preparing to launch new routes in Asia during the winter flight schedule later this year. The airline said it plans to use the capital infusion to sharpen its competitive edge and advance its growth strategy, including the new route launches, without disruption.
"This rights offering is part of the process of building a foundation for improved financial structure and sustainable growth," said Park Gwang-eun, the airline's head of management. "We will continue to enhance our business competitiveness and live up to the trust of our customers and the market."
terry@heraldcorp.com
