Hyungji I&C Rights Offering Fully Subscribed at 193.39% but Existing Shareholders Only 59%, Confirming Massive Dilution
Hyungji I&C disclosed the subscription results for its rights offering on July 16, 2026. The overall subscription rate reached 193.39% indicating oversubscription, but the existing shareholder subscription rate was only 59.05%, showing weak participation from current shareholders.
The rights offering issues 2,800,000 new shares representing 65% of the existing outstanding shares of 4,296,262 shares. Based on the final issuance price of 1,581 KRW, approximately 44.3 billion KRW will be raised and used for launching the new online brand Boldini and working capital.
The largest shareholder's stake will drop from 19.03% to 12.16%, diluting control. The company has recorded losses for three consecutive years with negative operating cash flow and faces heightened delisting risks.
No shareholder return measures such as treasury stock acquisition or dividends have been disclosed.
[AI Summary]This disclosure finalizes the completion of the massive rights offering. The low existing shareholder subscription rate of 59% reflects weak confidence, and the 65% dilution is now confirmed. The use of proceeds for a new brand carries high uncertainty given the company's poor financial health and may necessitate future capital raises.
KOSDAQ Filing Information
Subscription Results of Capital Increase or Equity-Linked Bonds, Etc. (Voluntary Disclosure)