Hanwha Solutions completed its rights offering subscription on May 22-23, securing a 102.68% subscription rate with 54,418,541 shares subscribed against a target of 53 million shares. The company announced on May 24 that the offering will raise ₩1.171 trillion at a final issue price of ₩22,100 per share. The capital raise aims to fund debt repayment and growth investments, though the final amount is half the originally planned ₩2.4 trillion due to regulatory corrections, shareholder opposition, and subsequent stock price declines that lowered the issue price by 20.8% from the initial ₩27,900.
Hanwha Solutions Secures 102.68% Subscription Rate in Rights Offering
Hanwha Solutions' employee stock ownership association subscribed to 9,839,590 shares during the May 22-23 subscription period. Existing shareholders subscribed to 38,430,497 shares through preemptive rights certificates. Oversubscription from existing shareholders totaled 6,148,454 shares, with an allocation ratio of approximately 77%. Shareholders participating in oversubscription will receive shares calculated by multiplying their requested quantity by the allocation ratio, with fractional shares below one share rounded down.
General Offering Scheduled for May 27-28 with June 11 Listing
The 51,792 fractional shares generated during oversubscription allocation will be offered to the general public on May 27-28. If shares remain unsold after the general offering, lead underwriters Korea Investment & Securities, NH Investment & Securities, KB Securities, and Daishin Securities will purchase the remainder at their own account according to their underwriting obligation ratios. Payment and refund dates are scheduled for May 30. New shares will be listed on June 11.
Issue Price Set at ₩22,100 Per Share
Hanwha Solutions finalized the new share issue price at ₩22,100 per share on May 20. The final price is 20.8% lower than the initial offering price of ₩27,900 calculated last month. The total funds raised amount to ₩1.171 trillion based on this pricing.
Fundraising Scale Reduced from ₩2.4 Trillion Original Plan
When Hanwha Solutions first announced the rights offering in March, the planned fundraising target was ₩2.4 trillion. The plan was reduced to ₩1.7 trillion after the Financial Supervisory Service requested two rounds of securities registration statement corrections and small shareholders voiced opposition. The final amount of ₩1.171 trillion represents approximately half the original plan due to the lower final issue price resulting from Hanwha Solutions' stock price decline.
Company Plans Debt Repayment and Asset Sales to Cover Shortfall
Hanwha Solutions originally intended to allocate ₩1.5 trillion of the raised funds to debt repayment and ₩900 billion to future growth business investments. The company stated it will cover the funding shortfall from the reduced rights offering scale through self-fundraising measures including securing US local liquidity. Hanwha Solutions recently sold a US venture investment fund for $84.3 million (approximately ₩125.5 billion). The company also plans to pursue ₩300 billion in investment asset securitization.
FAQ
What was Hanwha Solutions' subscription rate in the rights offering completed on May 22-23?
Hanwha Solutions achieved a 102.68% subscription rate with 54,418,541 shares subscribed against a target of 53 million shares. Employee stock ownership subscribed to 9,839,590 shares, existing shareholders subscribed to 38,430,497 shares through preemptive rights, and oversubscription totaled 6,148,454 shares at a 77% allocation ratio.
How much capital did Hanwha Solutions raise and how does it compare to the original plan?
Hanwha Solutions raised ₩1.171 trillion at a final issue price of ₩22,100 per share. This amount is approximately half the originally planned ₩2.4 trillion announced in March, reduced due to Financial Supervisory Service corrections, shareholder opposition lowering the target to ₩1.7 trillion, and stock price declines reducing the final issue price by 20.8% from ₩27,900.
