Entertainment corporations Ascendio decided on a 90% proportion of free capital reduction, causing the stock price to plummet. A free capital reduction means that shareholders will lose the number of shares by the decided reduction ratio without receiving any compensation.
Ascendio's stocks traded at 280 won on the KOSPI market at 9:29 a.m. on the 14th. The stock price fell by 29.29% (116 won) compared to the previous day.
Ascendio disclosed its capital reduction plan, which includes a free consolidation of 10 common shares into 1 share, after the market closed the previous day. This is to improve its financial structure through the restoration of deficits. After the free capital reduction, Ascendio's capital will decrease from 51.784747 billion won to 5.178474 billion won.
Ascendio plans to hold an extraordinary general meeting of shareholders on the 31st. If the free capital reduction passes at the shareholders' meeting, transactions will be suspended from February 14 to March 5, with new shares listing on March 6.