Daedong Gear Proposes Rights Offering and Stock Dividend - Capital Raise Amid Weak Financials
- Daedong Gear to issue 5,767,800 common shares (expected price 13,870 won, total ~80 billion won) via rights offering with standby underwriting, plus a 30% stock dividend (4,426,596 shares)
- Proceeds: ① 50 billion won for EV/HEV parts facility investment, ② 20 billion won for robot gear (RV/harmonic) R&D, ③ 10 billion won for operating funds (component purchases)
- FY2025 standalone: operating profit 162 million won (down 96.4% YoY), net loss 47.4 billion won, debt ratio 240.6%, interest coverage ratio 0.03x - weak financials
- Major shareholder Daedong Co. to subscribe only 50% of its allotment (1,290,270 shares), post-offering stake drops from 44.74% to 36.00%, raising governance dilution concerns
- Offering ratio of 64.18% implies significant dilution; discount rate 25%. Potential additional dilution from convertible bond (6th series) price adjustment
- Key risks: downturn in front-end industries (farm machinery/auto), customer concentration (Daedong 50.3%), uncertainty in new robot gear business, rising debt and liquidity risk
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KOSDAQ Filing Information
- Filing: [Correction of Description] Securities Registration Statement (Equity Securities)
- Company: DaedongGear (008830)
- Submission: DaedongGear
- Receipt: 05-08-2026