SEOUL - LG Display Co., a major South Korean panel manufacturer, announced on Monday its plans to raise 1.36 trillion won (US$1.05 billion) through a rights offering. This move is part of the company's strategy to enhance the competitiveness of its premium organic light-emitting diode (OLED) panel business.
According to Yonhap News Agency, LG Display will issue approximately 142 million new common shares at 9,550 won per share. The final issue price is set to be determined on February 29 next year, following two rounds of estimation. The company aims to use the proceeds from this rights issue to expand its production capabilities in small- and mid-sized OLED panels, which are used in various IT products, mobile devices, and cars. Additionally, the funds will support other OLED business areas, contributing to the overall competitiveness and future growth of the company. LG Display also plans to allocate a portion of the proceeds to repay debts, thereby improving its financial health.
Kim Sung-hyun, the Chief Financial Officer of LG Display, emphasized that the rights offering is targeted at refining the company’s OLED business and enhancing its financial stability. The global OLED market has been witnessing steady growth, driven by a gradual recovery in demand and increasing shipments to manufacturers of TVs, smartphones, and other IT products, as well as the automotive industry. OLED sales are expected to represent 50 percent of LG Display's total sales this year, a significant increase from 40 percent in 2022, and are projected to exceed 60 percent by 2024. LG Display is an affiliate of LG Group, South Korea's fourth-largest conglomerate, which also includes LG Electronics Inc.