Hyungji I&C files securities issuance report confirming completion of rights offering... 65% dilution finalized and new brand investment commences
Hyungji I&C submitted the Securities Issuance Report on July 20, 2026, finalizing the rights offering. 2.8 million new shares were issued, representing a 65% dilution relative to the pre-issue shares of 4.29 million, increasing total shares to 7.09 million.
The issue price was finalized at 1,581 KRW, raising approximately 44.3 billion KRW in total. All proceeds will be used to launch a new online-exclusive brand, BOLDINI.
The largest shareholder's stake declined from 19.03% to 12.20%. The company has recorded three consecutive years of losses and negative operating cash flow. No shareholder return policies such as share buybacks or dividends are in place.
[AI Summary]The massive 65% dilution has materialized, placing a significant burden on existing shareholders. Given the company's deteriorating financial health and the uncertainty of the new brand's success, investor caution is warranted.