Semisysco, Shares Surge 550% in a Month Amid Stake Sale and M&A Despite Investment Warnings

Trading Halted Today for Designated High-Risk Stocks

[Asia Economy Reporter Song Hwajeong] Semisysco was designated as a high-risk investment stock and trading was suspended as its rapid price surge did not subside despite being previously designated as a warning investment stock. Attention is focused on whether the rapid rise will continue after trading resumes, as it had recorded consecutive daily limit-ups even after the warning designation.

According to the Korea Exchange on the 10th, Semisysco was designated as a high-risk investment stock and trading was suspended for the entire day. Previously, after being designated as a warning investment stock, Semisysco’s stock price surged more than 40% over two days, leading to a trading suspension on the 7th. However, after trading resumed on the 8th, it hit the daily limit-up price for two consecutive days, prompting the announcement of its designation as a high-risk investment stock. The closing price on the 9th was the highest among the last 15 days, rose more than 45% compared to the closing price three days prior, and the three-day price increase rate was five times the rise of the composite stock price index during the same period, resulting in its designation as a high-risk investment stock.

Semisysco’s stock price jumped from the 7,000 won range on the 28th of last month to the 40,000 won range within eight trading days. During this period, it recorded the daily limit-up price for six days, rose 19% on one day, and had one day with no trading. It surged 550% in the past month.

The surge in Semisysco’s stock price was driven by a stock transfer contract and mergers and acquisitions (M&A). On the 31st of last month, Semisysco announced that it had signed a stock transfer contract involving a change of the largest shareholder. The largest shareholder, Lee Soonjong, and five related parties announced the sale of 2,129,957 shares to DMH and five others for approximately 31.4 billion won. At the same time, Energy Solutions announced its acquisition of Semisysco. Energy Solutions plans to participate in five rounds of third-party allotment capital increases between June and November, acquiring 5,630,775 shares of Semisysco worth 34.8 billion won.