NEXUS Decides Massive 26.8% Dilutive Capital Increase to Fund ONE Store Acquisition, Raising Dilution Concerns

NEXUS decided on a third-party allotment capital increase on June 18, 2026. The company will issue 17,171,788 shares to raise approximately 39.5 billion KRW, resulting in a 26.8% dilution of existing shares. The issue price is 2,300 KRW, a 12.2% discount to the current market price of 2,620 KRW.
All proceeds of 39,495,112,400 KRW will be used to acquire shares of ONE store. The company will purchase approximately 72% of ONE store from SK Square, Naver, and Krafton, a strategic investment to expand digital content business.
All new shares are subject to a one-year lock-up, with the first six months being a mandatory holding period due to asset acquisition. This mitigates short-term selling pressure but long-term dilution remains.
NEXUS's 2025 financials show total assets of 170.3 billion KRW, total liabilities of 70.6 billion KRW, equity of 99.7 billion KRW, and a net loss of 7.6 billion KRW. The capital increase will strengthen the balance sheet but at the cost of significant shareholder dilution.
[AI Summary]NEXUS's 26.8% dilutive capital increase funds the ONE store acquisition but inevitably dilutes existing shareholders. The one-year lock-up limits immediate selling, but the 12.2% discount to market price is unfavorable. Failure to realize post-acquisition synergies could sustain downward pressure on the stock.