Most of the trading volume of Koryo Zinc shares, which major shareholder Youngpoong and private equity fund (PEF) MBK Partners are conducting a tender offer for, has come from individual investors.
According to the Korea Exchange on the 21st, the total trading volume of Koryo Zinc (sum of sold and purchased shares) over three trading days since the start of the tender offer (September 13, 19?20) was 2,983,086 shares.
Kim Kwang-il, Vice Chairman of MBK Partners (right), is answering questions from the press at a press conference related to MBK Partners' public tender offer for Korea Zinc held at Lotte Hotel in Jung-gu, Seoul on the morning of the 19th. [Photo by Yonhap News]
Of these, individual investors accounted for 1,735,462 shares, representing 58.2% of the total trading volume. Institutions accounted for 553,661 shares, or 18.6%, and foreigners accounted for 641,740 shares, or 21.5%.
The trading volume is also decreasing. On the first day of the tender offer, it reached 586,718 shares, but on the second day it dropped to 518,279 shares, and on the third day it further decreased to 386,546 shares.
Koryo Zinc's stock price rose for three consecutive trading days, increasing 32.19% from 556,000 won before the tender offer to 735,000 won at the closing price. During trading on the 20th, it even rose to 753,000 won, setting a new 52-week high.
Experts say that individual investors have flocked in anticipation of an escalation in the management rights dispute, but some are showing speculative trading patterns using leverage, urging investors to exercise caution.
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