On the 23rd in the morning, Global Tax Free shares are plunging more than 15%.
As of 9:43 a.m. on the day, Global Tax Free is trading on the KOSDAQ market at 4,595 won, down 815 won (15.06%) from the previous session.
With the largest shareholder selling management control at a price 60% higher than the market price, and the company deciding to issue a large number of new shares at a 10% discount to the market price, investors appear to be dumping shares in disappointment.
While the major shareholder pockets a hefty management-control premium, ordinary shareholders are said to be left with the burden of share dilution from the paid-in capital increase.
Earlier, Global Tax Free disclosed the previous day that it had signed a contract to transfer 14.80% equity held by Chief Executive Moon Yang-geun, the largest shareholder, and related parties to GTF Holdings. The total transaction amount is about 90 billion won, with the per-share sale price at 8,650 won. That is about 60% higher than the closing price (5,410 won) on the disclosure date.
On the same day, the company said it decided on a third-party allotment paid-in capital increase worth about 14 billion won to raise operating funds and more. The allottees are EYESVISION and MDS Tech, and 1,539,815 new shares will be issued to each. The issue price for the new shares was set at 4,546 won, a 10% discount to the reference price (5,050 won).