Hanwha Solutions CI
Hanwha Solutions is pushing ahead with its planned 1.81 trillion won ($1.22 billion) rights offering after the fundraising was delayed twice by the Financial Supervisory Service, with the company maintaining that the scale of the capital increase is necessary to fund future growth investments and improve its financial structure.
The financial regulator, meanwhile, signaled it would continue applying strict scrutiny to the deal.
Hanwha Solutions disclosed detailed schedules Thursday for the shareholder allotment and public subscription process tied to the rights offering.
The final offering price, originally scheduled to be confirmed in early June, has been postponed to July 7. Subscription by existing shareholders will take place from July 10 to 13.
The company kept both the fundraising target and usage plan unchanged.
Hanwha Solutions plans to issue 56 million new common shares to raise a total of 1.8144 trillion won. Of the proceeds, 907.7 billion won will be used for facility investments, while 906.7 billion won will go toward debt repayment.
The planned offering price is set at 32,400 won per share, with the final issue price to be determined on July 7.
“Hanwha Solutions submitted a revised securities registration statement on Thursday in response to the Financial Supervisory Service’s second request for corrections related to the rights offering,” the company said in a statement.
The company added that the new shares are scheduled to begin trading on July 31 if the offering process proceeds as planned.
“We took the regulator’s second correction request seriously and prepared the revised filing as thoroughly as possible,” Hanwha Solutions said. “We provided detailed explanations regarding the issues that the regulator determined required additional clarification.”
Hanwha Corp., an affiliate of the group, will also participate in the capital increase. The company’s board approved participation in April.
Hanwha Solutions said the funds raised through the offering would be used to support facility investments tied to its renewable energy business.
The Financial Supervisory Service said Thursday it would review the revised filing under strict standards and in accordance with regulatory principles.
Earlier this week, the regulator told reporters that it had requested revisions twice because the filing lacked sufficient explanations regarding the company’s specific liquidity risks, whether alternative financing methods other than a rights offering were available and the basis for the company’s projection that earnings would improve. The regulator added that it would continue demanding revisions whenever it determines that information necessary for investors’ decision-making has not been adequately disclosed in the filing.
The regulator has maintained a hard-line stance on the deal since March, when it designated Hanwha Solutions’ rights offering filing as a priority review case immediately after its initial submission.
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