LB Semicon Announces 49.8B Won Rights Offering for Financial Improvement and Non-DDI Investment
LB Semicon plans to issue 12,000,000 shares (dilution ratio 20.66%) via rights offering with subsequent public offering, expecting to raise approximately 49.8 billion won based on the preliminary issue price of 4,150 won.
Of the proceeds, 30 billion won will be used for facility investment (Non-DDI capacity expansion for SoC, PMIC, CIS, power semiconductors) and 19.8 billion won for operating funds (raw material purchases including plating solutions and Au targets).
In Q1 2026, the company reported an operating profit of 7.6 billion won (first positive in three years), gross margin improved to 88.94%, and net income of 10.4 billion won.
Large asset impairment loss (121.8 billion won) recognized in 2025 reduced tangible asset book value, lowering depreciation burden and benefiting from severance cost savings.
As of end-Q1 2026, debt ratio was 146.6% (improved from 153.3% year-end 2025), current ratio 68.75%, total borrowings 318.7 billion won, and cash equivalents 18.5 billion won, indicating liquidity pressure.
Revenue concentration: 73.6% from two customers (A: 38.4%, B: 35.2%). Risk from DDI market structural slowdown and declining COF demand.
Net foreign currency liability of 66.9 billion won (end-2025) exposes the company to FX translation losses if the won weakens. High gold price increases raw material costs.
Outstanding convertible bonds (3rd and 4th series) total 74.5 billion won, potentially adding up to 14,346,804 shares (24.7% of existing shares) upon conversion.
The largest shareholder (LB Corp and related parties) intends to subscribe to 100% of allocated shares, maintaining a 27.24% stake post-offering. LAPIS Semiconductor (12.89%) has no lock-up obligation.
KB Securities is the lead underwriter on a firm commitment basis, with an underwriting fee of 0.8% of the total offering amount.
Potential schedule delays if designated for intensive review. The large 20.66% dilution poses downward pressure on the stock price.