1. DL’s Rights Offering: What Happened?

DL announced a ₩200 billion rights offering to secure operating funds for DL Chemical. The offering ratio is 0.1 shares per existing share, with a record date and subscription/payment date of August 18, 2025.

2. Why the Rights Offering?

DL Chemical has been facing challenges due to recent performance declines and economic slowdown. The funds raised through this rights offering will be used to improve DL Chemical’s operating funds and financial structure. In the long term, it is expected to lay the groundwork for strengthening business competitiveness through new business investments and the development of high-value-added products.

3. Impact on Stock Price:

a. Potential Positives:

  • Improved financial structure and stability for DL Chemical
  • Enhanced business competitiveness and long-term growth potential
  • Potential for long-term stock price appreciation

b. Potential Negatives:

  • Dilution of existing shareholders’ equity and decrease in earnings per share (EPS) due to increased number of outstanding shares
  • Potential for short-term stock price decline
  • Incurrence of financing costs and increased cost of equity capital
  • Possibility of inefficient use of funds

4. What Should Investors Do?

Investors should carefully consider the following:

  • Offering price and discount rate of the rights offering
  • Specific plans for the use of the raised funds
  • DL Chemical’s future business plans and outlook
  • DL’s investment attractiveness compared to its competitors

Rather than reacting to short-term stock price fluctuations, it’s crucial to analyze the company’s fundamentals and growth potential from a long-term perspective.