Crowdworks, which is tied to Lee Jae-myung, a presidential candidate, has decided to conduct a capital increase of 34.4 billion won, causing its stock price to plummet in early trading on the 22nd.
As of 9:29 a.m. on the 22nd, Crowdworks is trading at 9,210 won, down 2,390 won (20.6%) from the previous trading day on the Korea Securities Dealers Automated Quotations (KOSDAQ) market. In after-hours trading on the 21st, it closed at 10,440 won, marking a 10% decline from the regular market closing price.
Previously, Crowdworks announced on the 21st that it had decided to conduct a capital increase of 34.4 billion won. It plans to issue 4,295,262 new shares at 8,020 won per share to raise 34.448 billion won. The newly issued shares will be prioritized for existing shareholders, and if any shares are unsubscribed, they will be offered to the public. The record date for share allocation is set for July 10, with the final issuance price expected to be determined on August 8.
Crowdworks, an artificial intelligence (AI) data corporation, saw its stock price surge after CEO Kim Woo-seung joined Lee Jae-myung’s campaign as the vice-chairman of the AI committee. The stock price, which remained in the 5,000 won range on the 3rd of last month, recorded a series of upper limits over three consecutive trading days, spiking to the 15,000 won range. The surge in stock price suggests that the company is seeking to secure funds through a large-scale capital increase.
Crowdworks stated in a public announcement on April 9 that it is being mentioned as a thematic stock for a specific politician, but it has no relation to its past or current business activities.