 |
ISU Petasys |
[Alpha Biz= Reporter Kim Jisun] The Financial Supervisory Service (FSS) is increasingly requiring listed companies to submit amended filings for rights offerings.
On Monday, the FSS again intervened in ISU Petasys’ 548.9 billion KRW rights offering plan. According to a disclosure that day, the FSS requested a second amendment to the revised filing submitted by ISU Petasys on the 11th.
An FSS official stated, “We reviewed the first revised filing submitted on the 2nd and found that the core purpose of the rights offering—acquiring a specific company—was inadequately explained. We asked the company to fully detail the background, rationale, and potential impact of this decision. As the information remained unclear from an investor’s perspective, we issued a second request for revision.”
The official added, “In the second amendment request, we also required the company to describe its efforts to persuade shareholders, including whether it communicated or explained the plan to shareholders or has plans to do so in the future.”
ISU Petasys had earlier announced its 548.9 billion KRW rights offering plan after market hours on August 8. Of the funds raised, 300 billion KRW is allocated for acquiring JO, a developer of carbon-based advanced materials. However, minority shareholders have opposed the plan, arguing that it is difficult to generate synergies between ISU Petasys, a semiconductor substrate manufacturer, and JO, a battery materials company. The new shares to be issued would increase the company’s total shares by approximately 31.8%. Furthermore, the announcement of the large-scale rights offering after trading hours drew criticism. Since the disclosure, ISU Petasys’ share price has fallen by 17%.
Similar conflicts with minority shareholders are emerging at Hyundai Motor Securities, which announced a 200 billion KRW rights offering on August 26. The issuance involves new shares equivalent to 94.9% of the company’s total outstanding shares. Minority shareholders have criticized the move, stating that the company, with approximately 1.3 trillion KRW in equity capital, could have financed its needs through retained earnings or bond issuance. They have issued a statement condemning the rights offering for significantly diluting shareholder value.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
