SKC will seek to improve its financial structure by securing investment funds for its glass substrate business through a rights offering worth about 1.17 trillion won and cutting its debt ratio to about half. SKC said on Monday the final offer price was set at 99,500 won per share. It will issue 11.73 million new shares, with planned proceeds of 1.17 trillion won. The subscription period for existing shareholders is scheduled for May 14 and 15, and the new shares will be listed on June 8.

SKC will allocate 589.6 billion won to investment in the glass substrate business and 577.5 billion won to debt repayment. It initially planned to repay 410.0 billion won in borrowings, but its ability to repay expanded as total proceeds rose on a share price increase. SKC will keep its glass substrate investment plan unchanged, saying the amount is intended to prepare in advance for funding needs over the next three years, and will add the entire increase to debt repayment.

That is expected to lower its debt ratio to about 129 percent from about 230 percent as of the end of last year. That would be a bigger improvement than its earlier projection of the low 140 percent range if it repaid 410.0 billion won. The company is cutting interest costs in advance in a high-interest-rate environment while also securing room for business investment.

The proceeds exceeded the initial plan due to improved performance and active investor communication by management. SKC posted a first-quarter EBITDA profit of 10.0 billion won, returning to the black for the first time in 10 quarters. After that, Chief Executive Kim Jong-woo (김종우) and other executives held investor relations meetings for global institutional investors in four cities, including New York, and directly explained their plan to restore profitability and their strategy for the glass substrate business.

Progress in commercialising glass substrates by subsidiary Absolics is also cited as a factor behind the share price rebound. Absolics recently began a new project by supplying prototypes of Non-Embedding glass substrates for next-generation network semiconductors to a U.S. communications semiconductor company. The product improves performance compared with existing substrates in high-frequency, high-density environments, and is currently undergoing reliability evaluation by the customer. A view has emerged that if it passes the evaluation, it could begin preparing for mass production as early as within the year.

An SKC official said, "It is the result of shareholders and investors deeply sympathising with SKC's recovery of fundamental competitiveness and the future value of the next-generation glass substrate business, even in a difficult market environment." The official added, "Based on the secured funds, we will push ahead with the commercialisation of glass substrates without disruption, and through improving our financial structure we will pick up speed toward stability, recovery and a leap forward."