Douglas Research Insights

Douglas Research Insights

Share this post

Douglas Research Insights
Douglas Research Insights
HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won

HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won

Douglas Kim's avatar
Douglas Kim
Mar 23, 2024
∙ Paid

Share this post

Douglas Research Insights
Douglas Research Insights
HLB Life Science: Impact of Rights Offering Capital Raise of 150 Billion Won
1
Share
  • 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).

Keep reading with a 7-day free trial

Subscribe to Douglas Research Insights to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2025 Douglas Kim
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share