Private space INNOSPACE plunged more than 17% early on the 26th. The slide is seen as investor sentiment weakening after news the previous day of a large paid-in capital increase.
As of 9:46 a.m. that day, INNOSPACE was trading on the KOSDAQ market at 14,720 won, down 3,080 won (17.30%) from the previous session.
According to the Financial Supervisory Service's electronic disclosure system, after the regular session closed the previous day INNOSPACE disclosed it had decided on a paid-in capital increase worth about 82.5 billion won. The new shares to be issued are 7 million common shares, and the expected issue price is 11,780 won per share.
The funds raised are slated to be used for 6.65 billion won in facility funds, 60.81 billion won in operating funds, and 15 billion won in debt repayment funds, among others. The new shares are scheduled to be listed on Jun. 25.
A paid-in capital increase is a way for corporations to raise funds by issuing new shares. As the number of shares increases, the value of existing shareholders' equity is diluted, so investors typically see it as negative news.