POSCO FUTURE M, a listed company on the securities market, decided to carry out a capital increase of 1.1 trillion won, leading to a decline in stock prices in the early trading on the 14th.
As of 9:19 a.m. on that day, POSCO FUTURE M was trading at 111,100 won, down 9,000 won (7.49%) from the previous trading day.
POSCO FUTURE M announced that it plans to raise 1.1 trillion won by issuing 11,483,000 new shares at 95,800 won per share after the regular market closed the previous day. The process will be conducted by first allocating shares to existing shareholders, and if there are any unallocated shares, they will be made available for general subscription. The number of shares will increase by 14.8% from the current total of 77,463,220 shares.
The record date for the new share allocation is set for the 17th of next month, and the issuance price will be confirmed on July 16. POSCO Holdings, the largest shareholder of POSCO FUTURE M, has agreed to absorb all of the newly allocated shares according to its equity stake (59.7%). It will invest 525.6 billion won based on the planned issuance price.
The decision to undertake a large-scale capital increase appears to have significantly impacted investor sentiment, leading to a sharp decline in stock prices. POSCO Group explained that this capital increase is a proactive measure to improve its financial structure in preparation for growth in the battery business following the electric vehicle chasm.