[Special Stock] Homecenta Holdings Declines on 80% Free Capital Reduction

Home Center Holdings, facing worsening business conditions, is experiencing a decline immediately after the market opened on the 15th following news of an 80% free capital reduction.

As of 9:11 AM that day, Home Center Holdings was trading at 948 won on the KOSDAQ market, down 53 won (5.29%) from the previous close.

The stock price fell to as low as 940 won during the session, setting a new 52-week low.

Home Center Holdings announced that it decided on an 80% free capital reduction, reducing the par value per share from 500 won to 100 won. The number of issued shares remains the same at 127.66 million before and after the reduction, but the capital decreases from 63.83 billion won to 12.77 billion won. The record date for the capital reduction is December 27. The decision will be finalized at the extraordinary general meeting of shareholders on November 25.

The company stated the reason for the capital reduction as "to improve capital structure and enhance capital efficiency to increase corporate value, and based on the expanded distributable profits, to review and promote various shareholder return policies in the future."