AT Semicon Decides on 38 Billion KRW Rights Offering to Shareholders... "Accelerating Financial Structure Improvement"

[Asia Economy Reporter Jang Hyowon] AT Semicon, a total solution company for semiconductor back-end processes, announced on the 12th that it will stabilize its financial structure through a paid-in capital increase following a capital reduction without compensation last month.

On the 9th, AT Semicon disclosed that it decided on a paid-in capital increase by rights offering and general public subscription worth 39.01 billion KRW. The funds will be allocated as 4.511 billion KRW for facility investment, 2.063 billion KRW for operating funds, and 31.436 billion KRW for debt repayment.

The planned issue price per share is 2,715 KRW, reflecting the capital reduction ratio applied to the base price. The record date for new share allocation is May 14.

A company official stated, “Due to the expansion of the Jincheon plant and new equipment investments, the debt ratio, which was 172% in 2018, increased to 334% last year. Through this paid-in capital increase, we will accelerate the improvement of our financial structure by expanding capital and repaying borrowings.”

On the 16th of last month, AT Semicon decided on a capital reduction without compensation by consolidating 10 common shares into 1 share. After the reduction, the total number of issued shares will decrease from 142,615,812 shares to 14,261,581 shares. The capital will be reduced from the current 71.3 billion KRW to 7.1 billion KRW.

Additionally, some of the funds raised through the paid-in capital increase will be used for facility and operating expenses.

A company representative emphasized, “Along with strengthening the existing semiconductor back-end business, we will secure new growth engines for the company by promoting various new businesses.”

Meanwhile, on the 4th of last month, AT Semicon decided to acquire Leaders Technology Investment, a new technology investment specialized company, through a stock purchase agreement. The strategy is to secure competitiveness by creating synergy with the newly promoted bio business and establishing a mid- to long-term business strengthening plan.