One of the nation’s leading low-cost carriers, Jeju Air said Monday that new stocks worth 135 billion won ($114 million) have been allocated to the company’s existing shareholders and employees.

The stocks were offered at 12,400 won, a 20 percent discount from the company’s stock price as of the end of last week. The company’s shares fell by 0.32 percent to close at 15,500 won.

In Jeju Air’s recapitalization scheme, the Jeju municipal government subscribed for around 4 billion won of new shares. The local government initially planned to inject 8 billion won to purchase them, but decided to downsize the plan.

The rest of the shares were purchased by AK Holdings, the largest shareholder of Jeju Air.

Jeju Air will have its 12 million shares available to the public as well between Tuesday and Wednesday this week, the company said.

Jeju Air will use the proceeds to repay debt and improve its financial stability, which has been weakened amid the economic fallout from COVID-19.

“The recapitalization scheme will allow Jeju Air to secure financial means to fight the pandemic. The company will try its best to maintain its leading position in the low-cost airlines market here,” an official from the company said.

By Shim Woo-hyun (ws@heraldcorp.com)