According to SKC on May 18, the subscription rate for existing shareholders reached 113.01%, surpassing the 100% mark, while the employee stock ownership plan recorded a high subscription rate of 131.4%.
The company attributed the strong interest in the capital increase to improved performance and market expectations surrounding its restructuring focused on semiconductor-related businesses. Notably, the transition to positive EBITDA (earnings before interest, taxes, depreciation, and amortization) after ten quarters and the acceleration of the commercialization of the glass substrate business have positively influenced investor sentiment.
SKC stated, "The funds secured through this capital increase will be used to secure future growth drivers and establish financial stability." The company plans to invest 589.6 billion won in its semiconductor glass substrate business partner, Absolix, to expedite commercialization, while 577.5 billion won will be allocated to repay significant debts, improving key financial metrics. This is expected to reduce the debt ratio from approximately 230% at the end of last year to about 129%.
A representative from SKC commented, "The success of this large-scale capital increase confirms the market's strong belief in SKC's fundamental restructuring and the potential of next-generation core businesses like glass substrates. We will strategically invest the secured funds to seize the global glass substrate market while striving to enhance shareholder value based on unwavering financial stability."
One small shareholder expressed, "When I first heard about the capital increase, I was worried that the stock value might drop. However, SKC's investment in the capital increase is larger than the planned debt repayment, and I am optimistic about the significant investment in the growth of the glass substrate business as a shareholder."
Meanwhile, the public subscription for the fractional shares resulting from the allocation process, totaling 23,687 shares, will take place from May 19 to 20. The new shares from this capital increase are set to be listed on June 8.
* This article has been translated by AI.
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