SKC Finalizes 1.17 Trillion Won Rights Offering at 99,500 Won – Financial Restructuring and Glass Substrate Investment | SKC(011790)

SKC finalized the issuance price of 99,500 won for its rights offering of 11,730,000 shares, raising a total of 1.167 trillion won.
Of the proceeds, 589.6 billion won will be invested in Absolics Inc.'s glass substrate business, 577.5 billion won for debt repayment, and 5.8 billion won for issuance costs.
The rights offering improves the debt ratio from 232.75% to 129.58% (after debt repayment) and net debt ratio from 39.94% to 20.81%.
Major shareholder SK Inc. plans to subscribe to 100% of its allocation plus up to 20% oversubscription, increasing its stake from 40.64% to 43.79% post-offering.
In 2025, SKC reported an operating loss of 305 billion won and a net loss of 719.4 billion won, with a debt ratio of 232.7% and current ratio of 73.0%, indicating weak financial health.
Credit rating downgraded from A+ (negative) to A0 (stable), short-term debt burden increased to 1.87 trillion won, and operating cash flow remained negative.
Risk of delay in commercialization of Absolics' glass substrate and uncertainty around second factory expansion, potentially delaying receipt of $35 million in remaining subsidies.
If the exchangeable bonds (EB) are not converted, interest payments start from the third year, with step-up rates reaching 8% plus 2%p annually from the fifth year.
Preliminary Q1 2026 results: sales of 496.6 billion won (up 16% QoQ), operating loss of 28.7 billion won (improved by 78.9 billion won QoQ), and EBITDA turning positive.

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