Global K-beauty distribution corporations SILICON2(257720) is showing strength on news that it secured a 300 billion won investment from global private equity fund (PEF) manager CVC Capital.
As of 2:51 p.m. on the 18th, on the KOSDAQ market, SILICON2 is trading at 44,650 won, up 1,800 won (4.20%) from the previous session.
Immediately after the disclosure, it briefly surged to 47,150 won (10.03%) intraday before paring gains slightly.
SILICON2 said in a disclosure that it decided on a third-party allotment paid-in capital increase to raise 299,999,970,000 won for operating funds, among other uses.
The shares to be issued in this paid-in capital increase are 6,666,666 registered redeemable convertible shares (RCS), with an issue price of 45,000 won per share.
This amounts to 9.23% of the total number of shares issued before the capital increase. The third-party allotment recipient is Starlink Investment L.P., to be allocated 6,666,666 shares.
Starlink Investment L.P. is an investment vehicle of global PEF CVC Capital. Under resale restrictions, the new shares will be locked up for one year.
SILICON2 plans to use the funds secured this time as operating capital to expand global logistics infrastructure and increase overseas market share.
SILICON2 is a global distribution platform company that supports overseas distribution of K-beauty brands.