DXVX, a KOSDAQ-listed bio corporations, will proceed with a paid-in capital increase of about 100 billion won. The funding will be carried out through a third-party allotment to the existing largest shareholder.
DXVX said in a filing on the 22nd that it will newly issue about 49.21 million common shares to secure operating funds. The issue price is 2,027 won per share, for a total of about 99.7 billion won. The subscriber is the largest shareholder, CEO Lim Jong-yun.
This paid-in capital increase will be conducted as a third-party allotment to a specific party rather than a public offering. The company has been pursuing a healthcare platform and genomics analysis businesses, and it is seen as deciding on the capital increase to secure liquidity for business expansion and to obtain new growth engines.
As the largest shareholder will acquire the entire amount, some see it as a decision aimed at stabilizing management control and maintaining dominance. However, equity dilution for existing shareholders and short-term share price pressure due to the large new share issuance appear inevitable.