Uridul Hubrain Successfully Completes 35.7 Billion KRW Paid-in Capital Increase with 101.9% Subscription Rate from Existing Shareholders

[Asia Economy Reporter Hyunseok Yoo] Wooridul HuBrain announced on the 12th that it has successfully completed the rights offering subscription for existing shareholders.With an oversubscription rate exceeding 100% in the rights offering, the process was concluded early without a separate public offering procedure.

Wooridul HuBrain conducted a rights offering subscription for existing shareholders over two days starting from the 8th, recording a subscription rate of 101.9%. As a result, 27,648,933 shares were subscribed, exceeding the planned issuance of 27,138,644 shares. The issue price per share was 1,315 KRW, securing 35.7 billion KRW in funds.

The market attributed the successful rights offering to the relatively low issue price compared to the recent stock price. Considering the closing price of 1,850 KRW on the 8th against the final issue price of 1,315 KRW, the attractiveness of acquiring new shares at a discount was highlighted.

In particular, the participation of individual shareholders, who took responsibility for most of the subscription volume, played a significant role in driving the successful rights offering. According to the company, this reflects shareholders' confidence in the company’s growth potential, based on its successful know-how in the existing pharmaceutical distribution business and the newly entered quasi-drug distribution business.

A company representative stated, “The funds secured through this rights offering will be used to improve the financial structure by repaying debt, increase market share in the rapidly growing pharmaceutical and quasi-drug markets, and secure a definite future growth engine through related new business initiatives.” He added, “It is highly meaningful that despite the difficulties caused by COVID-19, the company’s growth potential and business viability were sufficiently recognized by the market, providing an opportunity for sustainable growth through securing quality funds.”

Meanwhile, the 6,395 odd shares resulting from the rights offering subscription will be underwritten by Korea Investment & Securities, the lead manager, on a principal basis in accordance with the Financial Investment Association’s regulations on securities underwriting. The payment date for the subscription is scheduled for the 16th, and the listing date for the new shares is set for July 29.