[Edaily Reporter Kim Kyung-eun ] SK D&D Co., Ltd(210980)is trading higher in early trading on the 6th. This is interpreted as reflecting expectations that concerns over the dilution of existing shareholders’ equity value will be alleviated, following the financial authorities’ decision to put the brakes on SK D&D Co., Ltd’s rights offering.

According to MP Doctor, as of 9:08 a.m. today, SK D&D Co., Ltd is trading at 5,820 won, up 1,245 won (27.21%) from the previous trading day.

Yesterday, the Financial Supervisory Service (FSS) requested that SK D&D Co., Ltd. submit an amended securities registration statement for the rights offering it filed on the 28th of last month. SK D&D Co., Ltd. must amend and resubmit the statement within three months.

The FSS explained, “This applies in cases where the description or presentation of important matters is unclear, thereby hindering investors’ ability to make reasonable investment decisions or potentially causing significant misunderstanding among investors.”

SK D&D Co., Ltd is proceeding with a rights offering to issue 44.68 million new common shares, equivalent to approximately 240% of its existing issued shares. This represents about 2.4 times the current 18,617,382 issued shares of SK D&D Co., Ltd, making significant dilution of shareholder value inevitable.

The planned issue price is 3,060 won per share. There is a significant gap between this price and the 12,750 won per share offered by Han & Company—the largest shareholder—during the two tender offers it conducted while pursuing voluntary delisting.

Han & Company maintains that it has no plans to pursue delisting or a tender offer for the time being. However, minority shareholders view this as a step toward increasing the largest shareholder’s stake in order to proceed with delisting.

The SK D&D Co., Ltd. Shareholders’ Alliance gathered through the minority shareholder platform ACT the previous day and submitted a petition to the Financial Supervisory Service (FSS) requesting a focused review of the rights offering. The alliance argued, “Under this structure, if subscription by existing shareholders is low, the largest shareholder’s stake could rise to as high as 92.62%,” adding, “The financial authorities must also examine the potential for the largest shareholder to strengthen its control in the future.”