Hanwha Solutions Cuts Rights Offering After Regulator’s Intervention...2.4 Trillion Won → 1.8 Trillion Won

[The Financial News] Hanwha Solutions has reduced the size of its planned rights offering from 2.4 trillion won to 1.8 trillion won. The move is seen as an adjustment of the issuance terms, cutting the portion for debt repayment after a request for correction from the Financial Supervisory Service (FSS).
On the 17th, Hanwha Solutions announced in a regulatory filing that it had submitted an amended registration statement lowering the size of the rights offering from about 2.4 trillion won to 1.8 trillion won.
Under the revised plan, the number of new shares to be issued will decrease from 72 million to 56 million. The expected issue price per share will also be cut from 33,300 won to 32,400 won. As a result, the total amount of funds to be raised will shrink by about 600 billion won.
The use of proceeds has also been adjusted. Funds for debt repayment will be reduced from 1.4899 trillion won to 906.7 billion won, a cut of roughly 600 billion won, while capital investment will remain at around 900 billion won as originally planned. In effect, the company has lowered the share of funds allocated to paying down debt while maintaining its investment stance.
The allocation ratio of new shares per existing share will be reduced from 0.3348 to 0.2604. The method of the capital increase remains the same: a rights offering to existing shareholders, with any unsubscribed shares offered to the public. The record date for the allocation of new shares is June 14, the subscription period runs from June 22 to 23, and the payment date is June 30.
The change in the rights offering terms came after the Financial Supervisory Service (FSS) demanded an amendment. On May 9, the FSS concluded that Hanwha Solutions’ securities registration statement lacked sufficient disclosure of key information and requested an amended registration statement, which suspended the effectiveness of the original filing.
Hanwha Solutions had earlier announced a large-scale rights offering mainly for debt repayment, but controversy followed over the board’s decision-making process and whether the planned use of funds was appropriate. During a shareholder meeting, remarks about whether the company had consulted with financial authorities in advance further fueled the backlash.
Industry observers say the combination of regulatory pushback and market concerns ultimately led the company to scale down the rights offering.


solidkjy@fnnews.com Reporter Gu Ja-yoon Reporter