Hanwha Aerospace Shares Slump on $2.5 Billion Share Sale Plan

  • Stock still up 94% this year on global boom in defense shares
  • Company plans to invest in overseas plants, stake purchases
Workers on the assembly line at Hanwha Aerospace Co.Photographer: Woohae Cho/Bloomberg
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Hanwha Aerospace Co., one of Asia’s top-performing stocks this year, plunged after disclosing a plan to raise 3.6 trillion won ($2.5 billion) in what would be South Korea’s biggest share sale in more than three years.

Shares of the South Korean weapons and rocket maker fell as much as 16% in Seoul on Friday, the most since March 2020. Hanwha Aerospace plans to issue almost 6 million shares at 605,000 won apiece, it saidBloomberg Terminal in a statement. That’s 16% below the stock’s close on Thursday.