The news that SMEC has decided to conduct a large-scale shareholder allocation capital increase has led to a decline in its stock price in early trading on the 3rd.
As of 9:18 a.m. on the same day, SMEC is trading at 2,575 won, down 365 won (12.41%) from the previous trading day. During the session, it dropped to 2,300 won, marking the lowest price in a year.
SMEC, a company specializing in machine tools and robotic automation solutions, announced after the market close the previous day that it would proceed with a shareholder allocation capital increase of 53.9 billion won through a method of public offering after the shareholders’ allocation, to finance the acquisition of securities from other corporations. This amount represents 45% of SMEC's market capitalization of 118.3 billion won on the previous day.
Through this capital increase, SMEC plans to acquire Lisson PE Partners and the machine tool division of HYUNDAI WIA, further strengthening its position in the global machine tool market. CEO Choi Young-seop plans to participate fully in the allocated amount of this capital increase.
The expected issue price of the new shares is 1,924 won per share, and the subscription date for existing shareholders is from June 16 to 17. The public offering subscription for any unsubscribed shares will be held from June 19 to 20. The new shares are expected to be listed on July 8.