SKC said on May 18 it recorded an existing shareholders’ subscription rate of 113 percent in a 1.17 trillion won rights offering. The subscription rate for its employee stock ownership plan also exceeded 100 percent at 131.4 percent. The company said demand was driven by market expectations for improved performance and a business reshuffle centred on semiconductors. It said a return to positive EBITDA for the first time in 10 quarters and faster commercialisation of its glass substrate business helped improve investor sentiment.

The funds raised will be split between investment in core businesses and strengthening financial stability. SKC will allocate 589.6 billion won to Absolics, its investment unit for semiconductor glass substrates, to speed commercialisation, and use the remaining 577.5 billion won to repay large borrowings. As a result, the debt ratio, which was about 230 percent at the end of last year, is expected to fall to about 129 percent.

A public subscription for 23,687 fractional shares generated in the allocation process will run for 2 days from May 19 to May 20. The new shares from the rights offering are scheduled to be listed on June 8.

An SKC official said the success of the large rights offering confirmed the market’s firm belief in SKC’s fundamental restructuring and the potential of next-generation core businesses such as glass substrates. The official said SKC would deploy the funds where needed to pre-empt the global glass substrate market and do its best to enhance shareholder value based on unwavering financial stability.