[Featured Stock] Hanwha Aero Hits Record High Amid FSC's Suspension of Capital Increase

Hanwha Aerospace's stock price hit a new high early in trading on the 18th. After the Financial Supervisory Service (FSS) requested a second amendment to the 2.3 trillion won rights offering the previous day, investors rushed to buy the stock.

As of 9:20 a.m. that day, Hanwha Aerospace's stock price was trading at 839,000 won per share, up 2.82% from the previous close. Right after the market opened, it surged to 842,000 won per share, breaking the previous high.

This upward trend followed the FSS's demand for another amended filing regarding Hanwha Aerospace's rights offering. Although Hanwha Aerospace had significantly reduced the rights offering size from 3.6 trillion won to 2.3 trillion won in the amended filing submitted earlier this month and supplemented details related to the acquisition of Hanwha Ocean shares, the FSS still found the disclosure lacking in specificity and insufficient in detail. In particular, it pointed out the need to improve explanations about the impact on shareholders and the company, as well as plans for shareholder communication.

As the rights offering schedule faced setbacks, the market reacted positively. On the day the FSS's second amendment request was made public, Hanwha Aerospace's stock price rose 3.55% compared to the previous trading day, surpassing 800,000 won per share for the first time ever on a closing basis.

Typically, large-scale rights offerings dilute existing shareholders' stakes through new share issuance, acting as a short-term negative factor for current shareholders. When Hanwha Aerospace announced its largest-ever rights offering plan last month, its stock price plunged double digits the following day.