[Song Young-Doo, Edaily Reporter] Syntekabio, an AI-driven drug discovery company, said on Sept. 15 it will raise 32.3 billion won($23.5 million) through a rights offering.

The capital increase, the largest in the company’s history, is designed to secure operating funds for the growth phase of its AI drug discovery business. It will also reduce reliance on high-interest borrowings and shift to a more equity-focused, sound financial structure.

As part of the plan, the company will repay 3.5 billion won in remaining short-term loans, significantly easing interest costs and strengthening capital stability.

The rights issue will be followed by a general public offering of any unsubscribed shares. The proceeds will be used for debt repayment and working capital. Lead underwriter SangSangin Securities, along with co-underwriters SK Securities and Hanyang Securities, will fully underwrite any remaining shares to ensure the entire funding plan is executed.

Earlier this month, Syntekabio issued 10 billion won in private convertible bonds and took on an additional 3.5 billion won in short-term loans.

With the new capital injection, the company expects to move away from a short-term liquidity-driven model, laying the foundation for sustainable growth and bolstering its bid to become a globally competitive AI drug discovery firm.

“This rights offering is not just about short-term liquidity, but a strategic investment to enhance long-term corporate value and future growth,” a Syntekabio spokesperson said. “Based on shareholders’ trust, we will build a stronger financial structure and accelerate the global competitiveness of our AI drug discovery platform business.”

Through this capital raise, Syntekabio aims to strengthen both financial stability and growth potential, solidifying its position as a leading player in the global AI drug discovery market.