Approx. 80 billion KRW rights offering with 64.18% dilution amid weak financials
DaedongGear decided to conduct a rights offering and public offering to raise approximately 80 billion KRW (expected issue price 13,870 won), issuing 5,767,800 new shares equivalent to 64.18% of existing shares.
The largest shareholder Daedong will subscribe to only 60% of its allotment, resulting in a stake decrease from 44.74% to 37.74% post-offering (potentially to 36.24% after bonus issue and convertible bond conversion).
Proceeds will be used for facility investments (50 billion won for EV/HEV production lines) and operating funds (30 billion won: 20 billion for robot reducer R&D, 10 billion for component purchases).
In 2025, operating profit fell 96.4% YoY to 0.16 billion won; Q1 2026 turned to operating loss of 1.4 billion won. Debt-to-equity ratio reached 293%, current ratio 68.5%, indicating financial deterioration.
Total borrowings stood at 120.7 billion won, interest coverage ratio -1.27x, increasing interest burden. Short-term financial risks are elevated despite the growth-oriented capital use.
KOSDAQ Filing Information
Filing: [Correction of Description] Securities Registration Statement (Equity Securities)