The fundraising plan of Seoul-based investment bank Hi Investment & Securities to fetch a combined 217.5 billion won ($187.8 million) is facing obstacles due to a possible court injunction.

A total of 16 plaintiffs are seeking legal action to halt Hi Investment & Securities’ plan to raise 100 billion won by issuing 62.5 million redeemable and convertible preference shares, the investment bank said in a disclosure Tuesday.

The Busan District Court will make a final ruling on the matter Thursday, a day ahead of the due date for the transaction.

Hi Investment & Securities said it is dealing with this issue through its legal representative.

This poses a double whammy for Hi Investment & Securities, as its plan to raise the remaining 117.5 billion won from retail investors through 100 million newly issued common shares is now questionable. The price at 1,175 won per share is set higher than 765 won in the off-exchange trading as of Tuesday. Hi Investment & Securities seeks to close the transaction by February.

Announced in December, the fundraising plan was meant to raise the investment bank’s equity capital to nearly 1 trillion won. Its equity capital as of end-September came to 786.3 billion won.

Hi Investment & Securities is controlled by provincial bank-led DGB Financial Group, based in Daegu. DGB Financial acquired the brokerage house in September 2018.

By Son Ji-hyoung (consnow@heraldcorp.com)