Korea Zinc’s stock experienced a dramatic decline, plummeting nearly 29.9% to reach the daily trading limit on Wednesday after the company revealed plans for a significant capital increase through the issuance of new shares totaling 2.5 trillion won ($1.81 billion).
In a regulatory disclosure, the company announced that its board had approved the issuance of approximately 3.73 million shares at a price of 670,000 won each. This valuation reflects a steep 57% discount compared to the previous day’s closing price of 1,543,000 won.
Korea Zinc clarified that of the anticipated 2.5 trillion won in proceeds, 2.3 trillion won is earmarked for debt repayment. The newly issued shares are set to begin trading on December 18, according to the filing.
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