The Financial Services Commission (FSC) has once again halted Hanwha Solutions' massive capital increase plan, causing serious delays to the new share issuance schedule. According to recent reports from financial authorities, the FSC requested on the 17th that the company revise and resubmit the content of the securities prospectus submitted previously, marking the second administrative action in just nine days. Authorities stated that the submitted documents lack statutory form, contain falsehoods or omissions in critical information, and are unclear in a manner that could hinder investors' rational judgment.
Consequently, the securities prospectus remains unapproved and its validity is suspended, with a high likelihood of changes across the entire securities issuance process, including the subscription schedule. If Hanwha Solutions fails to resubmit the revised prospectus within three months from today, the capital increase plan will be deemed withdrawn. This issue goes beyond mere paperwork, casting a significant variable on the company's capital raising plans and simultaneously arousing market interest and concern.
Hanwha Solutions had argued on March 26 that it needed to improve its financial structure to prevent a downgrade in credit rating due to the downturn in the global solar and chemical industries, making a surprise announcement of a capital increase plan worth 24 trillion won without sufficient prior communication with shareholders. During this process, it faced backlash from shareholders due to the lack of prior discussion and concerns about share price dilution from a large increase in shareholders. Even after reducing the capital increase scale to 18 trillion won by 6 trillion won following the FSC's first correction request, it still failed to pass the authorities' review.
Hanwha Solutions stated that it is taking the FSC's second correction request very seriously. It promised to once again deeply reflect on the various criticisms and opinions regarding the capital increase plan raised by shareholders and the media with a humble attitude. Authorities stated that they plan to prepare and submit a prospectus that meets the correction request requirements diligently, expressing their intention to prioritize enhancing corporate transparency and protecting investors during this process.