Hanwha Solutions has finalized its capital increase at approximately 1.2 trillion won, which is half of the initially planned 2.4 trillion won.
On July 20, Hanwha Solutions announced through a public disclosure that the final issuance price for the rights offering was set at 22,100 won per share.
This final price is 20.8% lower than the initial price of 27,900 won proposed after two correction requests from the Financial Supervisory Service last month. Consequently, the total amount raised through this capital increase is confirmed at 1.1713 trillion won, which is half of the 2.4 trillion won initially planned in March.
Initially, Hanwha Solutions intended to allocate 1.5 trillion won for debt repayment and 900 billion won for future growth investments. However, due to repeated correction requests from the Financial Supervisory Service and opposition from minority shareholders, the capital increase was reduced to 1.7 trillion won, and the final amount raised decreased to about 1.2 trillion won due to a decline in stock prices.
Hanwha Solutions plans to cover the shortfall from the reduced capital increase through self-funding, including securing liquidity in the U.S.
Meanwhile, as market volatility increases, the funding conditions for companies pursuing large capital increases are deteriorating. Heightened scrutiny from financial authorities over shareholder value dilution, coupled with market fluctuations, has led to several companies being unable to raise the originally planned amounts.
* This article has been translated by AI.
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