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[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Display is planning to increase its paid-in capital of 1.36 trillion won to strengthen its competitiveness in organic light-emitting diode (OLED) panel business.
LG Display announced on the 18th that it will raise capital by issuing new stocks in the form of a general public offering after allocating shareholders worth 1.36 trillion won. The new shares issued this time are about 142 million shares, and the capital increase ratio is 39.74%. The planned issuance price was set at 9,550 won with a 20% discount rate. The final issuance price will be finalized on February 29 next year after the first and second issuance price calculation procedures.
This paid-in capital increase is largely aimed at investing to continue to expand the order-type business. In fact, LG Display decided to invest 30% of its resources to invest in small and medium-sized OLED facilities. Based on this, it is planning to prepare a mass production and supply system in 2024 for IT OLED production lines that are applied with tandem (layer with two organic light emitting layers) technology that has excellent durability and performance such as long life and high luminance. In addition, the company will invest in facilities such as the establishment of clean rooms and IT infrastructure for mobile OLED production lines expanded in the second half of this year to expand mobile product shipments in earnest.
In addition, it will be used to build infrastructure related to the expansion of OLED panel production lines for vehicles and to introduce new production equipment such as exposure equipment and inspectors. Through this facility investment, LG Display plans to expand the number of automotive display customers and strengthen its competitive edge in product and technology that encompasses tandem OLED and high-end liquid crystal display (LCD).
In addition, it is used to renovate facilities to improve existing facilities and respond to new models for the purpose of general ordinary investment for product quality and process improvement.
LG Display will invest 40% of its funding to operate large, medium and small OLED shipments, expand its customer base, and purchase raw materials to respond to new products. The share of the OLED business in LG Display's total sales is expected to exceed 60% in 2024 from 40% in 2022.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
