In early trading on the 26th, JR Global REIT shares are plunging more than 14%. The decline is seen as stemming from dented investor sentiment after the decision on a large paid-in capital increase.
As of 9:41 a.m. that day on the main bourse, JR Global REIT is trading at 2,395 won, down 420 won (14.92%) from the previous session.
Earlier, on the 23rd, JR Global REIT resolved to conduct a 120 billion won paid-in capital increase via a shareholder allocation followed by a public offering of forfeited shares. Of the proceeds, 114.8 billion won will be used for operating funds and 5.2 billion won for debt repayment.
In particular, concern appears to have grown among investors as the fact that issuing additional bonds is effectively difficult has come to the fore. Through a shareholder letter, JR Investment Management said, "In a situation where public corporate bonds and electronic short-term bonds totaling about 400 billion won have been issued, the credit rating agency presented the view that additional bond issuance could negatively affect the REIT's credit rating," and added, "We cannot help but consider corresponding measures."
The record date for the rights offering is Feb. 11. About 0.236 shares per share will be allocated. The subscription date for existing shareholders is Mar. 23. The new shares will be listed on Apr. 10.