1. What Happened?
T’way Air announced a rights offering on August 7, 2025, aiming to raise approximately $110 million. They will issue 56,788,849 common shares at KRW 1,937 per share, with Sono International and Sono Square as major investors. The payment date is set for August 28th and the listing date for September 15th.
2. Why the Rights Offering?
T’way Air faces significant financial challenges, including persistent losses and a high debt-to-equity ratio of 4,353%. The rights offering aims to strengthen its financial position and secure funds for future growth initiatives such as replacing aging aircraft, acquiring new aircraft, and expanding routes.
3. Impact on Investors
- Positive Impacts: Improved financial health, increased investment capacity, enhanced operational stability, potential synergies with related companies.
- Negative Impacts: Potential share dilution, costs associated with the offering, possible short-term stock price decline.
4. Investor Action Plan
T’way Air’s rights offering presents both opportunities and risks. Consider the following before making investment decisions:
- The specifics and feasibility of the fund utilization plan
- Changes in the aviation market environment (oil prices, exchange rates, etc.)
- Competitiveness and profitability improvement efforts compared to competitors
- Synergies with related companies
- Share dilution effects