SEOUL, March 29 (Yonhap) — Hanwha Systems Co., the defense and ICT unit of Hanwha Group, said Monday it will raise 1.2 trillion won (US$1.06 billion) by selling stocks to finance new growth drivers.

Hanwha Systems said it will give the existing shareholders the right to buy 78.68 million shares at 15,250 won per stock before they are offered to other investors.

It will receive subscriptions on June 3-4, the company said in a regulatory filing.

The company said it will spend 700 billion won on mergers and acquisitions, while using the rest of the fund in operating facilities and investing in equipment.

Hanwha Systems, which has sensor, radar and communications technology in the military field, has been exploring new business opportunities in the aerospace sector and urban air mobility (UAM).

The company said Sunday it will complete the test of the electronic propulsion system for the UAM by June to get closer to its goal of developing a commercial air taxi by 2024.

Shares of Hanwha Systems on the KOSPI, the main bourse, have jumped 15.7 percent this year, but they dipped 5.94 percent to 19,000 won on Monday on concerns over stock dilution.

The mock-up of an electric vertical takeoff and landing aircraft called the Butterfly from Hanwha Systems Co. is on display at a defense industry fair held at KINTEX in Ilsan, north of Seoul, on Nov. 18, 2021, in this photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)