1. JSLink’s Rights Offering: What Happened?

JSLink, based on genomic analysis and personalized medicine, recently ventured into a new business: permanent magnet manufacturing. With the rights offering, scheduled for payment on January 30, 2026, the company plans to secure around ₩20 billion to accelerate investment in this new venture. The participation of Park Jin-soo, the largest shareholder of the largest shareholder, is interpreted as a positive signal for management stability and business transparency.

2. Why the Rights Offering?

JSLink has recorded net losses for three consecutive years since 2022, worsening its financial situation. With the urgent need for funds to invest in the new business, the rights offering appears to be an inevitable choice. This is expected to improve the company’s financial structure, including reducing debt ratios and securing liquidity.

3. Impact on Stock Price: Short-Term vs. Long-Term

  • Short-Term Impact: The increase in the number of shares due to the new issuance can lead to a dilution of existing shareholders’ equity, putting downward pressure on the stock price. The significant difference between the offering price (₩15,290) and the current stock price (around ₩6,043) suggests a high possibility of dilution.
  • Long-Term Impact: If the procured funds are successfully invested in the new business and generate tangible results, it can lead to an increase in corporate value and stock price in the long run. The success of the permanent magnet business will be a key factor in determining the stock’s future direction.

Furthermore, the overall market conditions, interest rate and exchange rate fluctuations, and other macroeconomic factors can also influence the stock price.

4. What Should Investors Do?

Investors should carefully consider the following factors before making investment decisions:

  • Be fully aware of the dilution effect and the possibility of a short-term stock price decline when participating in the rights offering.
  • Continuously monitor the progress and performance of the new business.
  • Closely observe the changes in the company’s financial soundness after the rights offering.
  • Understand the impact of changes in macroeconomic factors such as interest rates and exchange rates.