[Edaily Reporter Park Soon-yeop] NH Investment & Securities is set to raise 400 billion won in capital ahead of expanding its Integrated Investment Account (IMA) business. As expanding IMA, corporate finance, and venture capital investments requires greater capital capacity and financial soundness than before, this move is seen as an effort to strengthen the company’s business foundation with support from its largest shareholder, NH Nonghyup Financial Group.
#NH Investment & Securities announced on the 2nd that it has decided to conduct a third-party private placement worth a total of 400 billion won targeting its largest shareholder, NH Nonghyup Financial Group. The purpose of this capital increase is to secure the capital capacity necessary to expand its core new business, IMA, as well as related corporate finance and venture capital investments.

Since the IMA business involves securities firms receiving client funds and managing them through corporate finance and venture capital, capital strength is considered a key factor determining business competitiveness. It requires not only investment management capabilities but also the ability to repay principal plus interest, demanding a higher level of financial capacity than traditional securities businesses. As of the first quarter of this year, NH Investment & Securities’ net operating capital ratio stood at 159.3%, which is lower than that of major competitors.
Part of the raised funds will also be used to expand retail credit limits. While investor demand for credit has been growing rapidly due to the recent stock market boom, a securities firm’s credit limit is tied to the size of its equity capital. NH Investment & Securities plans to use this capital increase to strengthen its IMA business capabilities while also enhancing its responsiveness in the retail sector.
The market views this capital increase as having a strong strategic nature aimed at investing in growth businesses, rather than merely providing short-term financial reinforcement. While it does not aim for an immediate stock price boost like a share buyback and cancellation, investing the secured capital in the IMA and corporate finance sectors to broaden the revenue base is expected to increase corporate value and shareholder value in the medium to long term.
However, a rights offering generally raises concerns among existing shareholders about the dilution of their equity value, as the number of shares increases when new shares are issued. Since this capital increase involves the participation of the largest shareholder, NH Nonghyup Financial Group, rather than external investors, changes in management control or shareholder composition are expected to be limited. The issue price was also set at the reference price without a discount, so concerns about damage to shareholder value due to a low-price issuance are considered minimal.
The key question is whether the capital secured through the capital increase will actually lead to improved profitability. While there may be short-term concerns regarding share dilution, if the expansion of the IMA business and increased corporate finance revenues materialize, this could lead to enhanced corporate value in the medium to long term through improvements in earnings per share (EPS) and book value per share (BPS).
Yoon Byung-woon, CEO of NH Investment & Securities, stated, “We will efficiently utilize the secured capital to enhance profitability and corporate value, ultimately leading to increased shareholder value.”