Parent Company Aprogen Also Rises Over 7%
Announces 40 Billion CB + 60 Billion Paid-in Capital Increase
On the 5th, Aprogen Biologics soared to the upper limit in the stock market. This came as its parent company, Aprogen, decided to support it with 100 billion KRW through a paid-in capital increase and the acquisition of convertible bonds (CB). The major shareholder, Aprogen, is also showing a sharp upward trend following the news of support for its subsidiary.
Aprogen Biologics went straight to the upper limit from the start of trading and has not fallen from the upper limit throughout the morning. Its stock price rose 29.94% to 1,380 KRW. Aprogen, the parent company, was also trading at 1,298 KRW as of 10:17 AM, up 7.81% from the previous day.
Aprogen Biologics announced that it will issue 60 billion KRW worth of new shares (capital increase) and 40 billion KRW worth of CB to its largest shareholder, Aprogen. The 40 billion KRW raised from the CB issuance will be used to repay existing CBs, and the 60 billion KRW raised from the capital increase will be used for operating funds and other purposes.
The issuance price for the paid-in capital increase new shares was set at 908 KRW, a 10% discount from the reference stock price of 1,008 KRW. The capital increase will be conducted in two installments of 30 billion KRW each. Half of the new shares will be listed on August 30, and the remaining half on September 27.
A securities industry official explained, "Usually, when new shares increase due to capital increases or CB issuance, stock prices are diluted, but since the major shareholder Aprogen decided to support its subsidiary Aprogen Bio with 100 billion KRW based on its growth potential, it acted as a driving force for the stock price increase."
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