Shinhan Investment, a brokerage unit of major banking group Shinhan Financial Group, said on May 29 it has delayed a rights offering worth 660 billion won ($552.8 million) by about two months.
The firm had been scheduled to raise the money in a new share sale on June 4, in a move to diversify its business portfolio in investment banking.
The planned rights offering will begin on Aug. 5, Shinhan Investment said in a regulatory filing, without giving a reason for the delay.
If the rights offering is completed, Shinhan Investment‘s paid-in capital will exceed 4 trillion won, and the brokerage unit will be allowed to issue promissory notes.
The issuance of promissory notes is one of the key business operations open to investment banks that have more than 4 trillion won in capital.
In 2017, the government gave some brokerage firms the green light to pursue this business to nurture large investment banking entities.
By Ram Garikipati and newswires (firstname.lastname@example.org)