Hyungji Global stock jumps 19% after announcing major capital increase plan

After announcing a large-scale fundraising plan, Kosdaq-listed Hyungji Global's stock price is strong in early trading on the 2nd.

As of 10:04 a.m. on this day, Hyungji Global is trading at 9,540 won, up 1,560 won (19.55%) from the previous trading day.

After the market closed the previous day, Hyungji Global announced that it had decided on a shareholder allocation paid-in capital increase and a free capital increase. The paid-in capital increase of 20.5 billion won will issue 6 million new shares at 3,420 won per share. The number of newly issued shares corresponds to 90.6% of the existing shares (6,624,733 shares).

Hyungji Global stated that it plans to use 12 billion won of the 20.5 billion won for debt repayment, 7.1 billion won for operating funds, and 1.2 billion won for facility funds. Following subscriptions on June 12-13, the new shares will be listed on July 2.

The expectation that the paid-in capital increase price is one-third of the current stock price allows investors to purchase shares at a discounted price, which is interpreted as driving up the stock price.

A free capital increase will also be conducted, allocating 0.5 shares for each common share. Once the free capital increase is completed, the total number of issued shares will be 18,674,794 shares. The record date for the allocation of new shares is June 25, and the expected listing date is July 14. The free capital increase benefits existing shareholders as the actual number of shares held increases while the value of the shares does not decrease.

Following Hyungji Group's Hyungji I&C, Hyungji Global is also emerging as a theme stock for Lee Jae-myung, the leader of the Democratic Party, as it is in a phase of raising capital through stock at a time when its stock price surged. Hyungji Global has recently skyrocketed by 200% over the past six trading days.