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[Alpha Biz=(Chicago) Reporter Kim Jisun] Shares plunged 6% on the news that SK Innovation is promoting a large-scale paid-in capital increase of more than 1 trillion won.
The news that Innovation is pushing for a large-scale capital increase of more than 1 trillion won has plunged 6%.
SK Innovation said it would promote shareholder value enhancement, such as the retirement of treasury stocks, conscious of shareholders' opposition.
According to the Korea Exchange on the 26th, SK Innovation finished trading at 171,500 won, down 6.1% from the previous trading day. The holding company, SK, also fell 4.2%. After the market close on the 23rd, SK Innovation announced that it had decided on a paid-in capital increase through shareholder allocation to raise 1.18 trillion won. Usually, large-scale capital increase through shareholder allocation dilutes the value of the stake, so it acts as a factor in the share price decline.
Stock market analysts predicted that although the purpose of this paid-in capital increase for share dilution and debt redemption would have a negative impact on the stock price, the impact would be short-lived.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
