South Korean digital bank Tossbank announced a KRW 200 billion ($153 million) capital increase after a board meeting on March 16.
This is the seventh capital increase since the bank was established in October 2021.
The new shares will be issued at KRW 6,500 per share, a 30% increase from the previous KRW 5,000.
The latest capital increase includes issuing 30.77 million ordinary shares in a secondary offering to existing and new shareholders.
The capital payment is scheduled for March 30, bringing Tossbank’s total paid-in capital to KRW 1.65 trillion.
The new shareholder Korea Investment Capital Co., Ltd., will acquire a 4% stake worth KRW 65.9 billion.
Tossbank plans to cooperate with the company in various areas, leveraging its expertise in corporate finance.
In addition, Tossbank will work with Home&Shopping to leverage Home&Shopping’s extensive data on SMEs and small businesses to improve Tossbank’s credit rating model and customer acquisition.
The collaboration also aims to offer combined financial and retail/commerce benefits, such as loyalty programs.
The capital increase occurs in a challenging investment climate characterized by the global recession, high-interest rates, and market volatility.
Nevertheless, in just 1.5 years, Tossbank has become one of the leading Internet banks.
With the support of its shareholders, Tossbank aims to strengthen its risk management, diversify its product portfolio and continue its rapid growth in 2023.