KRW 828 Billion Rights Offering for Financial Restructuring and Glass Substrate Investment

SKC plans to issue 11,730,000 new shares (dilution 30.98%) via rights offering and public offering, expecting to raise KRW 828.1 billion (1st offering price KRW 70,600 per share)
Major shareholder SK Inc. will subscribe to 100% of its allocation plus up to 20% oversubscription; its stake to rise from 40.64% to 43.79%
FY2025 consolidated: revenue KRW 1.84tn, operating loss KRW 305bn, net loss KRW 719.4bn; debt ratio 232.75% – high financial leverage
Q1 2026 tentative results: revenue KRW 496.6bn (QoQ +16%), operating loss KRW 28.7bn (improved), EBITDA positive KRW 10bn (QoQ +KRW 64.7bn), driven by chemicals and ESS
Use of funds: ①KRW 589.6bn for Absolics Inc. equity – glass substrate commercial factory ②KRW 238.5bn for debt repayment and balance sheet improvement
Key risks: significant shareholder dilution (30.98%), additional ISC stake acquisition via call option (to 48.49%), potential continued weakness in subsidiaries
Other: step-up interest on exchangeable bonds, delay in glass substrate commercialization, low current ratio (73%)

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