Isupetasys Announces a Rights Offering of 32% of Outstanding Shares and Acquisition of Jeio

• Isupetasys (007660 KS) announced a large-scale rights offering worth 550 billion won. The company plans to issue 20.1 million new shares (32% of outstanding shares).

• About 55% of the capital raise proceeds will be used to acquire a 30.1% stake in Jeio (418550 KS). Remaining 45% will be used to invest in Isupetays' core business.

• Valuations on Isupetasys are not compelling. Isupetasys is also buying Jeio which has high P/E multiples, which could further result in capital outflow on Isupetasys among some value conscious investors.