KGI Financial Holding today (30th) announced that its Board of Directors has approved a cash capital increase through the issuance of new common shares. The planned issuance will be capped at 720 million shares, with an expected fundraising amount of approximately NT$20 billion to NT$25 billion. The actual proceeds will be determined based on the final offer price.
KGI Financial noted that Taiwan’s economic growth has been supported by the rapid development of the AI industry and continued momentum in the capital markets, driving steady demand for corporate fundraising, wealth management, and financial product trading services. To capitalize on these market opportunities and support the capital needs of business expansion, more than 70% of the proceeds from the planned capital increase are earmarked for KGI Securities. The investment will further strengthen the company's business development capabilities and market competitiveness. In addition to expanding the scale of its core businesses, the capital injection is expected to enhance the Group’s capital efficiency and support future earnings growth.
KGI Securities maintained strong momentum across its businesses during the first eight months of the year, posting cumulative net profit after tax of NT$22.754 billion, a record high for the same period in the company's history, representing 235% YoY growth. Its annualized return on equity (ROE) reached 44%, leading industry peers. In its investment banking business, KGI Securities continued to deepen its presence in key industries such as AI and semiconductors. During the first eight months of the year, it maintained its position as the market leader, with a market share of nearly 40% in total lead-underwritten deal value. The wealth management business continued to expand across Taiwan and Hong Kong, delivering strong revenue growth. Meanwhile, trading businesses, including derivatives and equity options, effectively captured market opportunities and continued to contribute to earnings growth.
KGI Financial stated that the capital increase will not only support KGI Securities’ future business expansion and capital requirements but also reflects the Group’s strategic focus on optimizing capital allocation and prioritizing businesses with high growth potential and strong capital efficiency. Looking ahead, KGI Financial will continue to strengthen its core competitive advantages through prudent yet initiative-taking capital management, while enhancing the Group’s overall profitability and maximizing shareholder value.
The new shares to be issued through the cash capital increase will be allocated in accordance with applicable regulations. Of the total issuance, 10% will be reserved for employee subscription, 10% will be offered through a public subscription process, and the remaining 80% will be made available to existing shareholders through preemptive subscription rights in proportion to their shareholdings. The actual issue price will be determined after the filing becomes effective with the competent authority, taking into account applicable regulations and market conditions. Subsequent subscription payments and share issuance procedures will then be carried out accordingly.
