On 21 March, HLB Life Science announced a rights offering capital raise worth 150 billion won.
The expected rights offering price is 13,630 won (32% lower than current price of 19,930 won) and there are 11 million shares in this rights offering (10% of outstanding shares).
HLB Inc (028300 KS) is the largest controlling shareholder of HLB Life Science (067630 KS) with an 18.7% stake in the company.
Conclusion First
HLB Life Science's rights offering capital raise of 150 billion won is likely to act as a headwind on the company's blistering share price increase in the past six months. Many investors will be concerned about the steep expected rights offering price which is more than 30% discount to current price. The additional shares dilution will be about 10%. Valuation multiples are quite high. It is trading at P/S of 22x and P/B of 9.1x using 2023 figures.
On 21 March, HLB Life Science (067630 KS) announced a rights offering capital raise worth 150 billion won. HLB Life Science currently has a market cap of 2.1 trillion won. The following are the details of the rights offering:
Right offering price (expected) - 13,630 won (32% lower than current price of 19,930 won)
Rights offering amount (expected) - 150 billion won
Rights offering shares - 11 million shares (10% of outstanding shares).
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