Shares of Syntekabio, an artificial intelligence (AI) drug discovery company, fell on the 5th. The decline is seen as stemming from the ability to "sell rights" to the new shares from the paid-in capital increase.
Selling rights means that an investor entitled to receive new shares sells in advance two trading days before the new shares are listed to lock in profits.
On the KOSDAQ market, as of 2:11 p.m. that day, Syntekabio was trading at 3,595 won, down 345 won (8.76%) from the previous trading day. It slid to as low as 3,350 won intraday, marking a 1-year low.
Earlier, Syntekabio carried out a shareholder-allotted paid-in capital increase of 24.3 billion won, issuing 9 million new shares at 2,700 won per share. The subscription rate by existing shareholders was 98.87%, and the remaining unsubscribed shares were absorbed through a public offering to general investors.
The new shares from the paid-in capital increase will be listed on the 7th. Starting that day, two trading days prior, investors can sell the rights.
Syntekabio plans to use the funds raised through the paid-in capital increase for debt repayment, facility investment, and working capital.