Sangji Construction, which was grouped as a presidential election theme stock and saw its share price soar, is conducting a paid-in capital increase, and the rights sale will be possible from May 20. A rights sale is a method where a person whose right to receive newly issued shares is confirmed as a result of a paid-in capital increase sells the stock in advance from two trading days before the listing of the new shares to secure profits.
Sangji Construction shares traded at 29,100 won in the KOSDAQ market at 2:18 p.m. on the 19th. The stock price fell by 15.77% (5,450 won) from the previous trading day. It seems that the number of investors who are trying to sell ahead of the rights sale date is not small.
Sangji Construction's closing price was about 3,165 won on April 1st, but it showed a steep upward trend as it was identified as a theme stock of presidential candidate Lee Jae-myung of the Democratic Party of Korea. The reason was that Im Moo-young, the company’s former outside director, joined Lee's campaign during the 2022 presidential election. The stock price of Sangji Construction soared to 56,400 won on the 18th of last month and fluctuated sharply between 22,600 won and 56,000 won thereafter.
Sangji Construction also conducted its paid-in capital increase using a rights offering method preferential to shareholders. The issue price for the new shares of Sangji Construction's paid-in capital increase was set at 22,850 won, planning to issue 4 million shares. However, only 446,898 shares were issued based on the subscription results.
The new shares issued under this Sangji Construction paid-in capital increase will be distributed in the stock market from the 22nd. This means that rights sales will be possible starting from the 20th, two trading days prior.
Based on the current stock price, participants in the paid-in capital increase are seeing an estimated profit of 27.4% (6,250 won). However, considering that the stock price often drops sharply on the rights sale date, a fierce struggle regarding the timing of the sale is expected.
Due to the characteristics of political theme stocks, it seems that many investors are trapped at high prices during the sharp fluctuations in stock prices. The average purchase price of 1,850 investors linked to Sangji Construction through Naver Pay 'My Asset Service' is 44,030 won. Based on the current stock price, the evaluation loss rate is 34% (14,930 won).