On the 26th, the stock price of IMAGIS fell in early trading following the news that it decided to conduct a paid-in capital increase worth 6.5 billion won for operating fund procurement.
As of 9:22 a.m. on that day, IMAGIS was trading at 1,282 won, down 177 won (12.13%) from the previous trading day. During trading, the price plunged to 1,160 won, marking a new 1-year low.
The fabless corporation IMAGIS, specializing in semiconductor design, officially announced on the 23rd that it decided to conduct a paid-in capital increase of 6.5331 billion won after the regular market close. The capital increase will be conducted through a method that allocates new shares to existing shareholders and a general public offering for any unallocated shares, with 6.3 million new shares to be issued. The newly issued shares amount to 36% of the current total number of outstanding shares (17,337,538 shares).
The news of the large-scale paid-in capital increase and the fact that the planned issuance price of the new shares (1,037 won) is nearly 30% lower than the closing price of 1,459 won on the previous transaction day, the 23rd, has been interpreted as a deterioration of investor sentiment. The issuance price is expected to be confirmed on July 14.
The scheduled subscription date for existing shareholders is from July 17 to 18, with the payment date set for the 25th of the same month. The new shares will be listed on August 6 of this year. IMAGIS plans to use the funds raised from the capital increase for operational funds.