[Funding] Dawonsys, Rights Offering to Shareholders Again After One Year

[Asia Economy Reporter Park Hyungsoo] Dawonsys, which raised 66.8 billion KRW through a rights offering in April last year, has once again sought to raise funds after one year. The raised funds will be used for facility investment in the new semiconductor and display equipment business and for building a factory for the nuclear fusion power supply device business.

According to the Financial Supervisory Service's electronic disclosure system on the 8th, Dawonsys is promoting a rights offering followed by a general public offering of forfeited shares, allocating 0.0963 old shares per new share. The planned issue price per new share is 21,850 KRW, and 3 million shares will be issued to raise 65.6 billion KRW. The record date for new share allocation is next month on the 14th, and the payment date is April 28.

A Dawonsys official explained, "We plan to expand production facilities to enter the semiconductor and display equipment markets, which are new businesses," adding, "Considering the recent supply disruptions in automotive and power semiconductors, we intend to invest funds to secure raw materials stably."

Dawonsys has developed special power supplies used in semiconductor front-end equipment for several years. With the increase in demand for high-spec IT products, cloud, and server semiconductors, investment in the semiconductor industry as a whole is expected to increase. The company has set a goal to enter the semiconductor equipment parts manufacturing business within this year. Part of the funds raised through the capital increase will be used for building manufacturing facilities and purchasing equipment for entering the semiconductor equipment parts and display equipment business. Additionally, 50.5 billion KRW will be spent by the fourth quarter of this year to stably secure raw materials related to power semiconductor devices and electrical control components.

Judging that the existing Ansan factory is insufficient due to business expansion, Dawonsys acquired land in the Daejeon New East District within the International Science Business Belt in the third quarter of last year. Approximately 10 billion KRW will be invested in design, supervision, and construction costs to build a factory for the nuclear fusion power supply device business. Dawonsys supplies special power supplies essential to the Korean fusion reactor (KSTAR) and the International Thermonuclear Experimental Reactor (ITER) projects. The company stated that it has received a request to participate in the ‘SPARC’ project by Commonwealth Fusion Systems, a spin-off venture from the Massachusetts Institute of Technology (MIT), and is preparing to secure major power supply orders.

Although the fund raising is inevitable for the new business, there are complaints as Dawonsys also raised funds through a rights offering for raw material purchases related to the electric vehicle business just one year ago. Following the announcement of the capital increase yesterday, Dawonsys's stock price fell more than 9% in after-hours trading.

Park Seonsun, the largest shareholder of Dawonsys, holds 15.95% (5,045,621 shares). Park plans to participate in the subscription within a maximum limit of 20% of the allocated shares using personal funds. The largest shareholder's stake is expected to fall to 14.85% after the capital increase. In last year's capital increase, Park also subscribed to only 20% of the allocated new shares. At that time, the shareholding ratio dropped by more than 2 percentage points.

This content was produced with the assistance of AI translation services.