1. Decoding Nextchip’s Rights Offering

Nextchip announced a rights offering on September 1, 2025, aiming to raise about 1 billion KRW. The offering price is set at 3,700 KRW, representing a substantial discount to the current market price. This move aims to partially address the company’s capital impairment and secure operating funds.

2. The Rationale: A Deep Dive into Capital Impairment

Nextchip is currently grappling with severe capital impairment. Despite future growth potential, its financial difficulties threaten the company’s very existence. The rights offering seeks to partially alleviate this impairment and secure funds for R&D and business expansion.

3. Impact on Investors: Weighing the Pros and Cons

  • Positive Aspects: Short-term liquidity relief, potential for improved financial structure
  • Negative Aspects: Share dilution due to the low offering price, limited impact on resolving fundamental financial issues, potential need for further fundraising

While downward pressure on the stock price is expected in the short term, the company’s long-term growth potential should be considered.

4. Investor Action Plan: Navigating the Uncertainty

  • Existing Shareholders: Carefully evaluate participation in the rights offering
  • Potential Investors: Explore opportunities for bargain purchases during potential price drops, closely monitor financial improvement trends and business performance

Nextchip’s future remains uncertain. Investment decisions should be made cautiously and based on thorough due diligence.