KOSDAQ-listed Nextchip was strong early on the 21st. It is seen as the effect of the ex-rights date from the paid-in capital increase that begins this day.
As of 9:28 a.m. that day, Nextchip was trading at 3,360 won, up 775 won (29.98%) from the previous session. Soaring right after the open, Nextchip reached the upper price limit (the top of the daily price band) in early trading.
After the regular session closed the previous day, the Korea Exchange announced that the ex-rights date for paid-in capital increase on Nextchip common shares would begin that day. The reference price is 2,585 won.
The ex-rights date means the date after the record date for new share allocation, when the right to a rights offering no longer exists. Generally, when the ex-rights date occurs, stock prices are artificially adjusted to ensure fairness between existing and new shareholders. As a result, a visual effect arises in which prices after the ex-rights date appear relatively low; at this time, buying interest tends to concentrate and the share price tends to be strong.
Earlier, automotive intelligent camera semiconductor company Nextchip announced last month that it would carry out a paid-in capital increase. It will allot 0.63824676 share per common share. The record date for new share allocation is on the 22nd, and the scheduled listing date for the new shares is Dec. 24.
Nextchip said it plans to use 22.7711 billion won raised through the paid-in capital increase as operating funds and for debt repayment.