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View of the Isu Petasis headquarters. (Photo = Isu Petasis) |
[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) has demanded that Isu Petasis submit a corrected filing regarding its controversial capital increase plan, which was linked to issues such as the "Owl Announcement" (late-night disclosures). According to the FSS announcement on December 2, Isu Petasis's securities filing, submitted on November 18, was deemed to be in violation of certain regulations. The FSS found that the filing was either not properly formatted, included false or missing information about important matters, or contained unclear details that could mislead investors or impede reasonable investment decisions.
Isu Petasis has been instructed to submit a corrected filing within three months. Failure to do so would result in the withdrawal of the securities filing. In the past, the FSS has taken similar actions with companies like Doosan and Korea Zinc, leading to the withdrawal of their capital increase plans.
Isu Petasis had announced a plan for a capital increase worth 549.8 billion KRW on November 8, issuing 20,103,080 new shares at a price of 27,350 KRW per share. The funds raised would be primarily used to acquire JEO, a manufacturer of carbon nanotubes (CNT). However, there has been skepticism in the market about the effectiveness of this acquisition, as the business areas of JEO and Isu Petasis differ significantly, making it difficult to enhance shareholder value through this capital increase. Concerns were also raised about why Isu Petasis, instead of its sister company Isu Specialty Chemicals, was leading the acquisition of JEO. As a result, Isu Petasis's stock price plunged by 37.4%, from 33,700 KRW on the day before the announcement to 21,100 KRW at the close on the day of the filing.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
