This article was displayed on the ChosunBiz MoneyMove (MM) website at 2:36 p.m. on May 19, 2026.
KOSDAQ-listed RNT-X moved to raise a large amount of capital after agreeing to welcome a new largest shareholder. Under the new largest shareholder, it is seeking to enter the defense industry to improve its fundamentals, creating a need for financing, but some note that the excessive size of the raise could be a burden. The funds it aims to raise this time are considerable even compared with its market capitalization, making a decline in the value of existing shares unavoidable.
According to the investment banking (IB) industry on the 19th, RNT-X plans to raise a total of 50 billion won this month by issuing convertible bonds (CB) and conducting a third-party allotment capital increase. That amounts to 66% of RNT-X's market capitalization of about 75 billion won.
RNT-X has seen its largest shareholder change frequently in a short period. In Jan., former largest shareholder iWIN transferred management control of RNT-X (then iWIN PLUS) to RN2 Technologies, but RN2 Technologies then decided in Apr. to sell control again to Withwin Investment Association No. 91. It effectively saw two new owners in just three months.
RNT-X's new largest shareholder, Withwin Investment Association, is an investment association in which Hwang Seong-hwan, a former Army brigadier general, holds 98.83% equity. After leaving the military, Hwang built defense industry experience at the Defense Acquisition Program Administration and Hanwha. In Mar., Hwang was also appointed an inside director at KOSDAQ-listed Davolink. However, Hwang has since resigned from Davolink's board, according to reports.
The issue is that as the largest shareholder changed multiple times, the company repeatedly tapped the market for funds under the pretext of entering new businesses, heightening overhang concerns. RN2 Technologies had moved to raise large sums through RNT-X, saying it would enter the superconductor business. But after control shifted again to Withwin Investment Association, it scrapped the superconductor business and announced plans to enter the defense industry.
Along with its attempt to enter the defense industry, RNT-X began aggressively raising funds needed for the new business. On the 12th, it decided to raise 20 billion won and 10 billion won through the 7th and 8th CBs, respectively, and 20 billion won via a third-party allotment capital increase. The subscriber for the 7th CB and the capital increase is Withwin Investment Association, which will become the new largest shareholder, while the subscriber for the 8th CB is Synergics No. 1 Investment Association. The newly raised funds will be used as operating capital for improving the financial structure and securing new growth engines.
The issuance terms favor investors. The conversion price of the CBs is 1,864 won, which allows for about a 20% gain considering the current share price is in the 2,300-won range (as of the close on the 18th). In addition, the coupon rate and yield to maturity are 2% and 6%, respectively, allowing investors to seek a decent level of interest revenue even without converting into shares.
However, some worry that the scale of the raise is excessively large given the size of the company. In addition to the 50 billion won funding, RNT-X is pursuing a total of 63 billion won over several months when adding 13 billion won raised through previously conducted CB issuances, capital increases, and small public offerings. That amounts to about 84% of its market capitalization. With the synergy between its existing core optical sensor business and the defense business unclear, large-scale fundraising could significantly burden existing shareholders' equity value.
As RNT-X planned a large-scale capital raise, the issuance terms of some previously prepared CBs were also changed in favor of investors. The 6th CB worth 5 billion won, which has been in preparation since Jan., was initially slated for issuance with a 0% coupon and 3% yield to maturity. But on the 14th, the terms were revised to a 2% coupon and 6% yield to maturity. The interest rates were raised to the same level as the 7th and 8th CBs.
An official in the capital markets industry said, "Given RNT-X's financial condition, the inflow of large funds itself is close to a positive," but noted, "If share price volatility rises on a defense theme when it is difficult to generate immediate business results, the resulting sharp swings could translate into potential losses for some investors."
Concerns over the large-scale fundraising also emerged inside RNT-X. On the 12th, Chief Executive Seong Yeong-cheol expressed opposition to all three funding deals totaling 50 billion won at a board meeting. The reason was that it was difficult to verify the subscribers' financing capabilities. However, all items passed with other directors in favor.