Shares of the artificial intelligence (AI) corporation Crowdworks plummeted in early trading on the 28th, interpreted as a consequence of the ability to 'sell rights' to newly issued shares from a paid-in capital increase.
Selling rights refers to the action where an investor entitled to receive new shares sells them two trading days before they are listed to secure profits.
Crowdworks shares were traded at 5,520 won in the KOSDAQ market at 9:07 a.m. on the same day, falling 11.54% (720 won) from the previous day. The price dipped to 5,310 won during early trading, a result of the influx of new shares from the paid-in capital increase.
Previously, Crowdworks launched a paid-in capital increase allocating 4.29 million new shares at 5,450 won each. The subscription rate among existing shareholders was 89.2%, and the remaining unsubscribed shares were absorbed through a general public offering.
The new shares from the paid-in capital increase will be listed on September 1. Selling rights can begin from this day, two trading days prior.
Crowdworks plans to use the funds raised from the paid-in capital increase to advance ▲ AI solution development ▲ expand new business ▲ research and development (R&D) ▲ and enter global markets.