On the 31st, shares of Enex(011090) listed on the main board are plunging in early trading. The drop appears to be due to concerns about being designated as an issue under management for failing to meet market capitalization requirements.
As of 9:12 a.m. that day, Enex shares on the main board were down 25.98% (556 won) from the previous trading day at 1,584 won.
On the 28th, reports said Enex Future Growth Fund, which is seeking to take over management control of Enex, was struggling to raise acquisition funds.
Enex said it would sell all the equity held by Chief Executive Park Jin-gyu, the existing largest shareholder, and related parties to Enex Future Growth Fund. The structure called for purchasing existing shares while simultaneously acquiring new shares through a third-party allotment paid-in capital increase worth 5 billion won.
However, with payment for the capital increase delayed, there is now a possibility that Enex could be designated as an issue under management. As of the 24th, Enex became a stock at risk of management designation for failing to meet market capitalization requirements.
In response, Enex Future Growth Fund said it would file for an injunction if Enex is designated as an issue under management for failing to meet market capitalization requirements.