Nextchip is showing weakness in its stock price as it failed to raise funds due to undersubscription in its recent capital increase.
As of 9:25 a.m. on the 13th, Nextchip is trading at 3,750 won, down 760 won (16.85%) from the previous transaction.
Nextchip announced plans to raise 50 billion won through a capital increase in June, intending to use 30 billion won for operating funds and the remaining approximately 20 billion won for debt repayment. Subsequently, the amount of capital raised was reduced to 40 billion won as the issue price was adjusted downward.
However, only about 20% of the planned issuance was subscribed in the general subscription conducted on the 4th and 5th, raising a red flag for funding. Accordingly, there is an urgent situation regarding debt repayment. The exercise date for the sell option of the 30 billion won convertible bond (CB) issued by Nextchip in 2023 is approaching in October.