NEXUS Completes 26.8% Dilutive Rights Offering to Fund ONESTORE Acquisition, Raising Dilution Concerns
NEXUS has completed a third-party allotment issuance of 17,171,788 shares, raising approximately 39.5 billion KRW. This represents a massive 26.8% dilution of existing shares. The issue price of 2,300 KRW is above the current market price of 1,649 KRW but does not fully alleviate dilution concerns.
All proceeds will be used to acquire approximately an 89% stake in ONESTORE from major shareholders including SK Square, Naver, and Krafton. ONESTORE has been loss-making for the past three years, making long-term synergy critical for value creation.
All new shares are subject to a one-year lock-up, limiting short-term selling pressure, but the dilution effect may weigh on the stock price over the long term.
No share buyback or cancellation plans have been announced.
Financial soundness indicators such as BIS ratio, NPL, or contingent liabilities were not disclosed, but the capital increase will boost the company's equity base.
[AI Summary]NEXUS has completed a 26.8% dilutive rights offering to fund the ONESTORE acquisition. While the issue price is above the current market price, the massive dilution impairs existing shareholder value. The one-year lock-up restricts immediate selling, but ONESTORE's persistent losses pose a risk of prolonged downward pressure if synergies fail to materialize.