POSCO FUTURE M announced that it will pursue a capital increase worth 1.1 trillion won, causing its stock price to plummet in the after-market (3:40 p.m. to 8 p.m.) on the 13th.
POSCO FUTURE M shares traded at 113,700 won in the after-market at 4:14 p.m. that day. This is a 7.71% (9,500 won) drop from the previous day's closing price. Compared to the closing price in the regular market that day, it decreased by 5.3% (6,400 won).
POSCO FUTURE M announced its capital increase plan after the regular market closed that day. The gist is to issue 11,483,000 new shares at 95,800 won per share to raise 1.1 trillion won. The shares will be allotted to existing shareholders (old shareholders), and if there are any unused shares, they will be offered to the general public. The number of shares will increase by 14.8% compared to the existing shares (77,463,220 shares).
The issue price for the new shares will be determined on July 16. POSCO Holdings, the largest shareholder of POSCO FUTURE M, has decided to absorb all the newly issued shares allocated according to its equity stake (59.7%). It will invest approximately 525.6 billion won based on the expected issue price.
POSCO Holdings will participate in the capital increases of not only POSCO FUTURE M but also POSCO Pilbara Lithium Solutions and POSCO GS Eco Materials. The investment amounts are expected to be around 328 billion won and 69 billion won, respectively.
After the announcement of this plan, POSCO Holdings shares also traded at 256,500 won in the same after-market. This is about 1,000 won lower than the closing price that day.
POSCO Group explained that this is a measure to proactively improve its financial structure in anticipation of the growth of the secondary battery business after the electric vehicle chasm (temporary demand lag).