Rights Offering First Issue Price Set at 2,030 Won - 2.8M New Shares Cause Significant Dilution Concerns

Hyungji I&C set the first issue price of its rights offering at 2,030 won, with 2,800,000 new shares representing approximately 65% of the current outstanding shares (4,296,262), a massive capital increase
The first issue price reflects a 30% discount to the reference price and about 20% discount to the current market price (2,540 won), leading to inevitable dilution of existing shareholders' equity value
With 2.8M new shares, total shares will increase to about 7,096,262, likely reducing EPS and BPS; shareholders who do not participate in the rights offering will face a decrease in ownership percentage
The final issue price will be the lower of the first and second issue prices, with a potential additional discount up to 40%; the final price is expected to be announced around July 7, 2026
[AI Summary]The massive rights offering causes significant dilution, negatively impacting short-term stock price; the 65% increase in shares raises concerns about shareholder value deterioration. Investors should monitor subsequent disclosures for the use of proceeds