South Korea’s budget carrier T’way Air Co. will pursue secondary offering worth 72 billion won ($60.6 million) after a delay in late July as its majority shareholder finally came up with the money to fully purchase the new shares and keep the airliner afloat amid pandemic environment.

T’way Air announced in a regulatory filing on Thursday that it will offer 72 billion won worth new shares to existing shareholders first and then hold public subscription for forfeited shares.

Its previous recapitalization effort did not go through in July because its largest shareholder T’way Holdings failed to raise funds to buy the new stocks.

T’way Air said that T’way Holdings is expected to buy the entire offerings this time, as the holding entity owning a 58.32 percent stake in the carrier disclosed on the same day that it would commit to subscription to maintain corporate value and market position.

The low-cost carrier will issue 45 million common shares at 1,600 won apiece, with 20 percent of the offering to be allocated to its employee union. The new shares will be listed on Nov. 27.

On Friday, Kospi-listed T`way Air shares lost 6.72 percent to close at 2,500 won.

T’way Air also held a board meeting on the same day to approve a plan for scrip issue by offering 0.2 bonus share for each common share on Nov. 16.

“In order to encourage participation in the rights offering scheme and enhance shareholder returns, the company will carry out both of the paid-in and free capital increase,” the company said. “The new shares to be issued after the rights offering will automatically be made eligible for the following bonus issue.”

By Choi Mira

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