Sangji Construction’s capital increase plan suffered a major setback. Sangji Construction became entangled with political theme stocks, and the stock price soared, leading to an issuance price more than four times that of the original plan. It seems the judgment was made that the risk of loss due to the decline in stock prices was significant.
Sangji Construction announced on the 30th through the Financial Supervisory Service electronic disclosure system that the subscription rate for the capital increase targeted at shareholders was recorded at 5.85%.
Sangji Construction publicly announced its plan for a capital increase in February, revealing plans to issue 4 million new shares to shareholders. However, as the early presidential election phase commenced, Sangji Construction became linked to political theme stocks, and the stock price skyrocketed, resulting in a significant increase in the issuance price. Originally set at 5,000 won per share, the issuance price rose to 22,850 won, forcing shareholders to subscribe at a price more than four times higher.
In the subscription for the capital increase held on the 28th to 29th, 4 million shares were set to be issued, but the actual subscription amounted to only 234,198 shares. This is 5.85% of the total volume. The unsubscribed shares will be solicited through a general public offering on the 7th to 8th of next month. Any unsold shares in the general public offering will not be issued.
As the stock price surged due to being linked to political theme stocks, the risk of a sharp decline also increased, likely contributing to the lack of participation in subscriptions by shareholders. Currently, Sangji Construction's stock price is 31,000 won, but it is deemed unlikely that the stock price will be maintained until the listing date for new shares on the 22nd of next month.
The promise to participate in 100% of the allocation for the largest shareholder was kept, but the ratio it occupied in the total amount was only 3.94%. Sangji Construction noted, “Our largest shareholder participated in the previous shareholders' subscription for this capital increase with 3.598 billion won,” and explained, “This is 100% of the allocation based on the securities registration statement, but relative to the final offering price, it stands at 3.94%.”