Jin Air issuing 109.2 billion won of new shares

Jin Air aircraft. [JIN AIR]

Jin Air is issuing 109.2 billion won ($91.96 million) of new shares following a board vote in favor of the sale on Wednesday.

The budget carrier, 60 percent owned by Hanjin KAL, said 15 million shares will be issued at 7,280 won each.

Shares of airline last traded at 9,980 won on Wednesday, with the news of the share sales coming after the market close.

The company's current market capitalization is 299.4 billion won.

The fundraising effort is part of the company’s plan to recover from difficulties caused by travel restrictions. The new capital will go toward operating expenses.

Twenty percent of the new shares will be pre-allocated to Jin Air employees.

Existing shareholders are able to participate in the offering of new shares for two days from Oct. 26, while other investors can place orders for two days starting Oct. 29.

Shinhan Investment, Mirae Asset Daewoo, KB Securities and Samsung Securities will be accepting the orders.

Once the new shares are issued, the total number of shares outstanding will increase from the current 30 million to 45 million.

Hanjin KAL will report soon on whether it will participate in the offering, according to a spokesperson for Jin Air.

BY JIN MIN-JI [jin.minji@joongang.co.kr]