ROBOTIS is showing weakness in early trading on the 29th following news that it will pursue a 100 billion won rights offering.
As of 9:12 a.m. on that day, ROBOTIS is trading at 88,600 won, down 5,000 won (5.34%) from the previous trading day.
On the 28th, ROBOTIS announced it would pursue a rights offering worth 100 billion won. Funds raised through the rights offering will be used for facility and operating expenses. The target for the offering is existing shareholders, and 0.1 new shares will be issued for each share.
While the news of a large-scale rights offering has led to a downturn in the stock price, analysts in the securities industry indicate that funding is necessary to expand production capacity but express disappointment that it is being conducted as a rights offering.
Lee Ji-ho, a researcher at Meritz Securities, noted, "Considering ROBOTIS's increased market position, attracting strategic investors (SI) or financial investors (FI) would have been more efficient," and added, "To restore damaged investor sentiment, it must demonstrate steady growth in actuator shipments and export performance of new products."