Financing through Public Offerings for Initial Listings
Listings for public offerings allow for needed funds to be raised in a short time from public
Facilitating Capital Increase by Public Offering after Listing
Since stocks are dispersed as a result of the public offering for the listing, funds can be raised from a large number of investors (small investors) through rights offering. The determination of the issue price with reference to the stock price is facilitated
General Capital Increase by Public Offering (Article 189, Number 3 of the Securities Exchange Act)
General capital increase by public offering (eliminating preemptive rights of shareholders and distributing new shares to numerous and unspecified persons) is possible.
Expanding Limits for Issuing Stocks without Voting Rights (Article 191, Number 2 of the Securities Exchange Act)
Stocks that do not have voting rights according to commercial laws may be issued up to 1/4 of the total amount of issued stocks. However, stocks without voting rights that are issued abroad by listed corporations on KOSDAQ and stocks without voting rights that are issued due to convertible bonds and bonds with warrants, etc. being issued abroad are omitted when calculating the limit.
Expanding Limits for Issuing Debentures (Article 191, Number 5 of the Securities Exchange Act)
Among convertible bonds and bonds with warrants, the amount applicable to the portion converted to stocks or to the portion of preemptive rights that can be exercised is not applicable to the restrictions of the commercial law for limiting corporate bond issues (4 times the net assets)
Issuing of New Types of Debentures (Article 19, Number 4 of the Securities Exchange Act)
Apart from convertible bonds and bonds with warrants, participating bonds (debentures that may share in the distribution of profits as well as receive interest according to the debenture’s interest rate) and exchangeable bonds (debentures that are granted the right to request exchanges with listed securities or KOSDAQ listed stocks) may be issued