Hyungji I&C Pursues Large Rights Offering and Capital Reduction Amid Persistent Financial Risks
- Hyungji I&C (apparel) conducts a rights offering of 2,800,000 shares (65.17% dilution) with standby underwriting, plus a 10:1 capital reduction. Estimated issue price KRW 4,670, total proceeds ~KRW 13.076 billion.
- Use of funds: KRW 8 billion for new online brand 'Boldini' launch, KRW 5.076 billion for debt repayment.
- 2025 sales KRW 50.8 billion (-10.5% YoY), operating loss KRW 7.0 billion, net loss KRW 8.9 billion. Negative operating cash flow (-KRW 3.4 billion), debt ratio 80.36%.
- Key risks: market cap near delisting threshold (KRW 15 billion), pending lawsuit (~KRW 2.2 billion), heavy reliance on outsourcing, rising inventory impairment, potential dilution of largest shareholder stake.
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KOSDAQ Filing Information
- Filing: [Correction of Description] Securities Registration Statement (Equity Securities)
- Company: Hyungji I&C (011080)
- Submission: Hyungji I&C
- Receipt: 05-15-2026