Lee Chae-yoon, head of LEENO Industrial, the No. 6 KOSDAQ corporations by market cap, will sell 9% of her equity. On news that the largest shareholder is selling equity, LEENO Industrial is plunging 7% and is in transaction on NextTrade (NXT).
According to the Financial Supervisory Service's electronic disclosure system on the 24th, LEENO Industrial disclosed that on this day the head plans to dispose of 7 million shares (9.18% equity stake) out of 26,418,345 shares held, through after-hours trading for one month starting on the 26th of next month. With this disposal, the head's equity stake in LEENO Industrial will be 25.48%.
The expected disposal unit price is 123,300 won per share, for a total of 863.1 billion won. The company said the transaction purpose was "asset management through the sale of held shares."
Among shareholders, concerns are growing as the largest shareholder's equity sale is being read as a "peak signal," given that it took place during the recent surge in the share price. In fact, the share price rose from the 60,000 won range at the start of the year to 124,400 won on this day, gaining more than 100%.
In particular, some shareholders are citing the case of Sam Chun Dang Pharm. Sam Chun Dang Pharm's share price topped 1 million won this year, joining the ranks of "emperor stocks," but after news broke of a 250 billion won block deal by head Jeon In-seok, peak concerns spread and the share price fell into the 500,000 won range.
As of 5:48 p.m. on this day, on NextTrade (NXT), LEENO Industrial is in transaction at 114,000 won, down 9,300 won (7.54%).