Lunit (KOSDAQ: 328130), South Korea's leading medical AI company, enters the final stretch of its rights offering with shareholder subscription starting April 22-23, 2026.
The company is raising KRW 211.5 billion (~$155M USD) through 7,906,816 new shares at KRW 26,750 per share, a 28.2% discount to the April 17 closing price of ~KRW 37,250. Of this, KRW 137.8 billion is earmarked for convertible bond (CB) repayment and KRW 73.7 billion for operating expenses.
Why This Matters: Survival Capital, Not Growth Capital
The core driver is financial restructuring. Lunit's debt ratio surged from 14% in 2023 to 169.2% by end-2025, while its current ratio collapsed from 1,802% to 26.2%, driven by KRW 171.5 billion in CBs issued to finance the Volpara acquisition.
Actual Dilution Is ~6%, Not 28%
The 28.2% issue price discount does not equal shareholder dilution. Theoretical dilution: pre-offering market cap (KRW 1.09T) plus new capital (KRW 211.5B), divided by post-offering shares (37.19M) = ~KRW 35,000. That is ~6.0% below the pre-offering price.
Bonus Share Twist
A 1:1 bonus share distribution follows on May 6 (record date), listing May 26. The per-share price halves to ~KRW 17,500, but portfolio value is unchanged as each shareholder receives one extra share per share held.
Three Shareholder Choices
- Subscribe: Valid if you believe Lunit delivers AI medical revenue growth after CB repayment.
- Sell subscription rights: Partially offsets dilution, rational for short-term holders.
- Abstain: Accept ~6% passive dilution.
Subscription window: April 22-23. Payment: April 30. New shares list: May 15.
For the full Korean-language analysis, visit Snakestock.
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