1. What’s Happening with Foodnamoo’s Rights Offering?
Foodnamoo announced on September 16, 2025, a rights offering to its largest shareholder, Onhill Partners, to raise approximately ₩10 billion. They plan to issue 4,982,561 new common shares at a price of ₩2,007 per share, matching the closing price on September 16th.
- Number of shares issued: 4,982,561 (approximately 17% increase)
- Issue price: ₩2,007
- Payment date: September 30, 2025
- Listing date: October 29, 2025
2. Why the Rights Offering?
Foodnamoo plans to use the proceeds from the rights offering to improve its financial structure, secure operating funds, and invest in new business ventures. Facing challenges like declining sales and an operating loss in the first half of 2025, along with a high debt ratio, Foodnamoo aims to restore its financial health and secure future growth through this capital raise.
3. What’s the Impact on the Stock Price?
In the short term, the issuance of new shares (approximately 17%) could put downward pressure on the stock price due to dilution. However, in the long term, improvements in the company’s financial structure and investments in new businesses could potentially increase its value. The participation of Onhill Partners, the largest shareholder, can be seen as a positive signal, demonstrating management’s commitment.
4. What Should Investors Do?
Investors should be aware of potential short-term price volatility and closely monitor how Foodnamoo utilizes the raised capital, as well as its future earnings performance. The success of new business ventures and changes in the competitive landscape are also important factors to consider. The current investment recommendation for Foodnamoo remains ‘Neutral’.