The automotive semiconductor specialized company Nextchip is once again embarking on a capital increase through public offering. This comes about two weeks after the newly issued shares from the public offering were listed.
Nextchip shares were traded at 3,040 won on the KOSDAQ market at 2:33 p.m. on the 2nd. The stock price dropped by 3.18% (100 won) compared to the previous day. Although Nextchip's share price reached 3,360 won during the day, it turned downward upon news of additional capital increase, indicating that many investors are concerned that the stock value will be diluted as new shares are increased through the capital increase.
Nextchip announced on the same day that it is pushing for a capital increase worth 24.3 billion won. The plan allocates approximately 0.64 new shares to existing shareholders, and if there are unexercised shares, it will solicit subscriptions from general investors.
On the previous day, Nextchip also proceeded with a third-party allocation of a capital increase to CEO Kim Kyeong-soo, planning to raise 1 billion won.
However, considering the backlash from shareholders, the issue price of the new shares differs. CEO Kim plans to issue 1 new share at 3,700 won without a discount, while applying a 30% discount for the capital increase allocated to existing shareholders. The expected issue price is 1,911 won per new share. The issue price is set to be determined on November 28.
Following this, subscriptions for existing shareholders will take place from December 3 to 4, followed by general public offering subscriptions, with plans to list the new shares on the 24th of the same month.
Earlier, Nextchip conducted a public offering capital increase worth 7.6 billion won. The new shares were listed on the 21st of last month. This means that just two weeks after the completion of the capital increase, they are once again embarking on an additional capital increase.
This is because the previous capital increase fell short of the initial fundraising target of 40 billion won by 20%. As a result, red flags were raised regarding the recovery of financial soundness through the repayment of convertible bonds (CB) and securing operating funds.
Nextchip plans to secure funds for debt repayment and research and development (R&D) expenses through the additional capital increase.