Oversubscription leaves no unallocated shares

101 billion won raised to shore up finances

Dispute over controlling shareholder's stake expansion put to rest

SK D&D corporate identity logo [Provided by SK D&D]
SK D&D corporate identity logo [Provided by SK D&D]

SK D&D's rights offering closed with a subscription rate exceeding 115 percent, after controlling shareholder Han & Company subscribed to its full allotment and additional oversubscriptions poured in, allowing the company to raise its target of about 101 billion won ($75.5 million). The result gives SK D&D room to ease its near-term liquidity burden and pursue improvements to its financial structure.

SK D&D disclosed that its rights offering, which ran through Tuesday, drew subscriptions for 51,613,927 shares — surpassing the 44,681,000 shares planned for issuance — for a final subscription rate of 115.52%. The offering price was set at 2,260 won per share, bringing total proceeds to about 101 billion won.

Han & Company, which holds a 78.69 percent stake in SK D&D, subscribed to its entire allotment of approximately 79.5 billion won, driving the capital raise. Existing shareholders followed suit, submitting subscriptions for 43,286,672 shares — about 97 percent of the planned issuance. An additional 8,327,255 shares in oversubscriptions were received, leaving no unallocated shares. The new shares are set to be listed Oct. 28.

The path to a full sellout was not without turbulence. Shortly after the offering was announced, some minority shareholders raised concerns that Han & Company was using the rights offering to increase its stake as a prelude to a voluntary delisting. In response, Han & Company said it would not pursue a voluntary delisting through additional tender offers or other means for at least three years.

Full participation by the controlling shareholder, followed by subscriptions from other shareholders, ultimately made the planned fundraising possible.

"Both the controlling shareholder and the majority of minority shareholders took part," an investment banking industry official said. "This represents an opportunity for the controlling shareholder and shareholders together to put SK D&D's financial structure back on track."

SK D&D plans to use the roughly 101 billion won raised to repay maturing corporate bonds and settle interim construction loans for a knowledge industry center in Gunpo. The company expects the proceeds to help it weather its short-term liquidity pressures and advance its broader financial restructuring.


an@heraldcorp.com