KOSDAQ-listed Fine M-Tec was strong in early trading on the 19th.
As of 9:41 a.m. that day, Fine M-Tec was trading at 9,060 won, up 360 won (4.14%) from the previous session.
As analysis emerged in the securities industry that foldable display company Fine M-Tec could secure a new large client in connection with its recently executed large paid-in capital increase, buying interest appears to have poured in.
According to the Financial Supervisory Service's electronic disclosure system, Fine M-Tec announced two paid-in capital increases on the 17th. The total number of shares to be issued is 6,038,935, equivalent to 16.04% of the total number of shares outstanding before the capital increase (37,640,073). The total size is 57 billion won.
Fine M-Tec said it will use 20 billion won for foldable laser equipment facility funds. Earlier, Fine M-Tec disclosed that it would spend 33.52 billion won on foldable facility investment in July and Oct. this year.
Kwon Myeong-jun, an analyst at Yuanta Securities Korea, said, "Even as Fine M-Tec is already selling built-in hinges for foldable smartphones to domestic and overseas clients, the fact that an investment exceeding 50 billion won is proceeding is preparation for a new large client."
Kwon went on to say, "Fine M-Tec's strength lies in its experience responding to various materials through product development tailored to client demands, and this is expected to be a factor in its comparative advantage over competitors."