The stock price of SY STEEL TECH, which is tied to companies related to the reconstruction of Ukraine, fell sharply by over 20% in the NextTrade after-market (3:40 p.m. to 8 p.m.) on the 27th. This came after news of a capital increase decision that is about 40% of its market capitalization was announced after the regular trading session ended.
As of 5:43 p.m. on the 27th, SY STEEL TECH was trading at 4,680 won, down 1,470 won (23.9%) from the previous trading day. On the same day, SY STEEL TECH finished trading at 5,990 won, a drop of 160 won (2.6%) compared to the previous trading day on the Korea Exchange.
SY STEEL TECH announced its capital increase plan after the regular trading session. It will issue 15 million new shares, allocating them to existing shareholders, and if there are any unsold shares, it will be offered to general investors. For each existing share, 0.49 new shares will be allocated.
The planned issuance price of new shares is 4,375 won, which is a 27% discount compared to the closing price of the regular trading session. The issuance price is expected to be determined on August 29.
SY STEEL TECH stated that it plans to raise approximately 65.6 billion won through this capital increase at the planned issuance price, which will be used for facility funds (37 billion), debt repayment (15 billion), and operating funds (13.6 billion).
In addition, it was announced that a free allocation of 0.1 shares per share will also take place with the record date of September 15.