 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Financial Supervisory Service has issued a second request for revisions to Hanwha Solutions’ securities registration statement for its planned rights offering.
According to regulatory filings on April 30, the watchdog asked the company to submit another amended filing, following an earlier correction request on April 9. The move suggests the regulator found that initial revisions did not sufficiently address concerns.
The FSS is believed to be focusing on overly optimistic language in the filing that could mislead investors, indicating that disclosure standards have not yet been fully met.
Hanwha Solutions had already revised the deal on April 17, reducing the offering size from about KRW 2.4 trillion to KRW 1.8 trillion. The adjustment came amid shareholder backlash and regulatory pressure, particularly over the use of proceeds.
The company scaled back funds allocated for debt repayment from KRW 1.5 trillion to around KRW 900 billion, easing concerns that a large portion of the capital raise would go toward deleveraging rather than growth investment.
The rights offering, first announced on March 26, sparked controversy as it amounted to roughly 30% of the company’s market capitalization, with more than 60% initially earmarked for debt repayment—drawing criticism from investors.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
