Hanwha Solutions’ plan for a paid-in capital increase has been delayed again after South Korea’s financial regulator demanded further revisions, saying more investor-protection disclosures are needed even after the company reduced the deal size.
According to Yonhap News Agency on Wednesday, the Financial Supervisory Service again asked Hanwha Solutions to submit an amended securities registration statement for its rights offering. It was the second such request, following an earlier one on April 9. The filing has not been accepted and its effectiveness has been suspended, leaving the subscription schedule and other issuance procedures uncertain.
The watchdog said key information was missing or unclear, raising concerns it could hinder investors from making a reasonable judgment. If the company fails to address the issues within a set period, the filing will be deemed withdrawn.
Hanwha Solutions had initially sought a rights offering of about 2.4 trillion won, but after controversy cut the plan by 600 billion won to about 1.8 trillion won and resubmitted it. The revised filing still did not clear the regulator.
The issue has moved beyond a procedural dispute to broader questions of market confidence in the purpose and structure of the fundraising. Analysts have pointed to shareholder backlash fueled by the size of the offering aimed at debt repayment and what they described as insufficient prior communication.
A securities firm official said regulators have become more conservative as scrutiny of rights offerings tightens, adding that large deals are increasingly reviewed through the lens of governance and shareholder value.
Hanwha Solutions said it “takes the FSS request seriously” and will “faithfully prepare” an amended filing.
* This article has been translated by AI.
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