Shares of building materials specialist SY STEEL TECH fell more than 10% on the morning of the 23rd. The drop is largely seen as stemming from the "rights selling" of new shares issued via a paid-in capital increase.
Rights selling refers to investors who are entitled to receive new shares selling them in advance two trading days before the new shares are listed to lock in profits.
As of 9:18 a.m. on the 23rd, SY STEEL TECH was trading at 3,515 won on the KOSDAQ market, down 430 won (10.9%) from the previous session.
Earlier, SY STEEL TECH launched a shareholder-allotted paid-in capital increase to issue 15 million new shares at 3,345 won per share. The subscription rate by existing shareholders was 99.96%, and the remaining unsubscribed shares were underwritten by lead manager KB Securities.
The new shares from the paid-in capital increase will be listed on Sept. 25. Rights can be sold starting today, two trading days prior.