The secondary battery manufacturer Kumyang, listed on the securities market, will conduct a capital increase of 405 billion won. This comes five months after it withdrew its capital increase plan in January.
According to the Financial Supervisory Service electronic disclosure system on the 4th, Kumyang will issue 13 million common shares and 14 million redeemable preferred shares (RPS). Although RPS carries no voting rights, it is issued under the condition of a 2% preferred dividend and a guaranteed annual compound yield of 5%. The issue price of the new shares is 15,000 won, which is 51.5% higher than the last share price of 9,900 won. The payment date is set for August 2.
It is noteworthy that all new shares will be purchased by Skaeeb Trading & Contracting Company (STCC), a new corporation established on March 10 of this year. Its capital is 100 million won. According to its official website, the company is headquartered in Saudi Arabia.
Kumyang plans to use the 250 billion won raised through the capital increase to build a secondary battery plant. The remaining 155 billion won will be used for the 21700 (21mm in diameter, 70mm in height) and 4695 (46mm in diameter, 95mm in height) cylindrical battery facilities.
Kumyang was subjected to substantive examination for delisting from the Korea Exchange last March. This is due to receiving an 'opinion denial' from an external auditor when it submitted its audit report for the 2024 business year. Currently, it has been granted a period for improvement until April 14 of next year following an objection.