[Special Stock] Hyeongji I&C Plummets Following 3-for-1 Free Capital Reduction Decision

[Asia Economy Reporter Minji Lee] Hyungji I&C is experiencing a sharp decline of up to 18% during trading hours.

At 10:43 AM on the 11th, Hyungji I&C was trading at 708 KRW, down 17.77% from the previous trading day. The stock price fell to as low as 690 KRW during the session. The decision for a free capital reduction to escape capital erosion dragged the stock price down.

The day before, Hyungji I&C decided on a 3-for-1 free capital reduction. This means that three common shares will be consolidated into one, reducing the number of issued shares from 39,013,649 to 13,004,549.

The company explained, “This is to improve the financial structure by covering accumulated losses.” The record date for the capital reduction is October 4, 2022, and the scheduled listing date for the new shares is October 20, 2022. Due to the capital reduction decision, the capital will decrease from 19.50682 billion KRW before the reduction to 6.50227 billion KRW.