Taihan announces $387 mn rights offering for plant

[Courtesy of Taihan Cable & Solution]

Taihan Cable & Solution announced plans to embark on a substantial rights offering exceeding 500 billion won ($387 million) to facilitate the construction of its second submarine cable plant.

In an official disclosure on Thursday, Taihan revealed its decision to conduct a rights offering of about 520 billion won through a potential general public offering after allocated shares to existing shareholders. The issuance will comprise 62 million new shares with an expected price of 8,480 won per share as of the announcement date, and the largest shareholder, Hoban Industrial with a 40.1 percent stake, has confirmed its participation in the rights offering. The final issuance size and price will be determined on February 22, 2024, subject to the prevailing market conditions.

Around 470 billion won of the funds raised through the rights offering will be earmarked for the construction of the company’s second submarine cable plant. Taihan aims to actively respond to the increasing global demand for submarine cables by expanding its production capacity from its Plant I, which is currently under construction in Dangjin Port, Chungnam Province.

Plant II will manufacture 525-kilovolt high-voltage direct current (HVDC) submarine cables and 345-kilovolt external network submarine cables, and will be equipped with cutting-edge facilities such as the Vertical Continuous Vulcanizing (VCV) tower, crucial for high-voltage cable production, to secure a production capacity about five times larger than that of Plant I. Taihan aims to complete the construction by 2026 and commence operations in the first half of 2027, but Plant II’s specific location is still under final review.