Sejong Telecom logo. /Courtesy of Sejong Telecom

KOSDAQ-listed Sejong Telecom hit the upper price limit in early trading on the 7th after news that the largest shareholder would participate in a large paid-in capital increase.

On the KOSDAQ market that day, Sejong Telecom stood at 8,200 won right after the open, up 1,890 won (29.95%) from the previous trading day.

After the market closed the previous day, Sejong Telecom said in a disclosure that it would carry out a third-party allotment paid-in capital increase worth 28 billion won.

All of the new shares were allotted to Sejong Co., the largest shareholder of Sejong Telecom. Sejong Co. will acquire 4 million newly issued shares, which will be subject to a one-year lockup.

Of the funds to be raised through this paid-in capital increase, Sejong Telecom plans to use 22 billion won for operating funds and the remaining 6 billion won for facility funds.

The funds to be raised through this paid-in capital increase amount to 44.4% of Sejong Telecom's market capitalization (63.1 billion won) based on the previous trading day.

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