[Featured Stock] Isu Petasys Hits New Low Amid Doubts Over Rights Issue and Acquisition of J.O

Isu Petasys hit a new 52-week low again as the impact of a large-scale rights offering and skepticism in the securities market regarding the acquisition and merger (M&A) of J.O. coincided.

As of 10:09 a.m. on the 15th, Isu Petasys was trading at 22,500 KRW, down 1,050 KRW (4.46%) from the previous trading day.

The stock price fell to an intraday low of 22,250 KRW, hitting a new 52-week low again.

Earlier, on the 8th, Isu Petasys suddenly announced a large-scale rights offering worth 550 billion KRW after the after-hours trading ended. Of this, 299.8 billion KRW is planned to be used for acquiring J.O. stocks and convertible bonds. The market criticized the company for making a negative disclosure belatedly.

The securities market continues to express skepticism about the decision to acquire J.O.

Kiwoom Securities, in a report on the same day, judged that the corporate acquisition and large-scale rights offering are elements of uncertainty for Isu Petasys and lowered the target price to 45,000 KRW. The investment opinion was maintained as 'Buy.'

Kim Sowon, a researcher at Kiwoom Securities, analyzed, "The stock price plunged sharply after the announcement of the rights offering, trading at about 13 times the 12-month forward price-to-earnings ratio (PE). However, the large-scale rights offering to acquire a company with limited direct synergy still remains an uncertainty, and more proactive efforts to enhance shareholder value are judged to be necessary."

Yang Seungsoo, a researcher at Meritz Securities, also adjusted Isu Petasys's investment opinion from 'Buy' to 'Hold' in a report on the 11th, criticizing it as an "incomprehensible decision."