The Financial Supervisory Service has ordered Hanwha Solutions to revise its plan for a 2.4 trillion won ($1.62 billion) rights offering, citing insufficient disclosures in its filing.

The regulator said “certain material information” was either missing or unclear, hindering potential buyers' ability to make investment decisions. The company has up to three months to submit a revised statement.

Hanwha Solutions announced on March 26 that it would issue 72 million new shares to raise 2.4 trillion won. It plans to use about 1.5 trillion won to repay short-term borrowings and corporate bonds, while the remaining 900 billion won will be used for investments, including in solar energy.

The plan was met with a backlash from shareholders, who criticized the use of a capital increase to pay off debts following weak earnings. The company posted an operating loss of about 365 billion won last year, hit by a downturn in its solar and petrochemicals businesses.

Shares fell roughly 20 percent in the two trading sessions after the announcement and were trading at 40,500 won as of late morning Friday, down sharply from a 52-week high of 59,300 won in February.

The controversy widened after CFO Jung Won-young said at an April 3 meeting with retail investors that the company had communicated with the FSS before filing the plan — a claim the regulator denied.

Hanwha Solutions said it would fully comply with the revision request and focus on enhancing shareholder value in its updated filing.

The move comes amid heightened regulatory scrutiny of large-scale capital increases by Hanwha Group affiliates. Last year, Hanwha Aerospace was also ordered to revise its capital raising plan over disclosure issues before adjusting the deal size.

By Im Eun-byel (silverstar@heraldcorp.com)