[Featured Stock] CJ Bioscience Drops Over 8% Following 65 Billion KRW Rights Offering

CJ Bioscience is experiencing an early session decline of over 8% on the 23rd. The news of a 65 billion KRW rights offering is believed to have driven the stock price down.

As of 9:34 AM on the same day, CJ Bioscience's stock price on the KOSDAQ market is trading at 28,100 KRW, down 8.32% from the previous trading day.

During the session, the price fell as much as 11.42% to 27,150 KRW before slightly recovering.

The previous day, CJ Bioscience announced a rights offering of approximately 65 billion KRW involving 3,233,830 shares to secure investment funds for microbiome drug development.

The expected issue price of the new shares is 20,100 KRW, and the offering will proceed through a shareholder allocation followed by a general public subscription for any unsubscribed shares.

Large-scale rights offerings often have a dilutive effect on equity value, which frequently acts as a factor causing stock price declines.