Shares of Hanmi Financial Corp. fell sharply Monday on news that the Los Angeles company is planning to raise roughly $75 million by selling shares of its common stock.
The $3 billion-asset Hanmi said that it intends to use the bulk of the proceeds to beef up capital levels at its Hanmi Bank and to "support future organic and acquisition-driven growth." The remaining funds would be used by the holding company for working capital and other general corporate purposes, Hanmi said in a news release Monday.
Hanmi added that it expects to offer additional shares to FBR Capital Markets & Co., which could net it another $11.25 million. FBR is underwriting the public offering.
In heavy trading, Hanmi's shares fell 16% Monday, closing at 88 cents.
The announcement of the planned stock offering came just four days after Hanmi revealed that a planned capital-raising agreement with a large South Korean bank had been terminated.
Under that agreement announced more than a year ago, Woori Finance Holdings Co. was to invest $210 million in Hanmi. But no agreement was ever reached and on Thursday the companies said that they had instead entered in a business alliance in which the two banks would collaborate on trade finance and international remittances.
