South Korea's financial regulator has again ordered Hanwha Solutions to revise its share sale plan due to insufficient disclosures. The company had already reduced the offering size following an earlier request. Hanwha Solutions aims to raise funds to repay debt amid market challenges.
South Korea's Financial Supervisory Service (FSS) ordered Hanwha Solutions on May 1 to revise its share sale plan again, citing failures to meet formal requirements and unclear or missing information on key issues that could affect investors' decisions. As a result, the securities registration statement was not accepted, and its effectiveness was suspended.
The company announced the large-scale rights offering on March 26 to raise 2.4 trillion won ($1.6 billion), drawing criticism over its process and purpose. Following the FSS's initial request on April 9, it reduced the size to 1.8 trillion won in the revised plan.
Hanwha Solutions, the energy solutions arm of Hanwha Group, stated the move is necessary to improve its financial structure amid a slowdown in global solar and petrochemical markets and to prevent a credit rating downgrade. The company said it takes the regulator's request seriously and will submit a revised filing reflecting feedback from shareholders and the media.
