[Special Stock] Smac Drops 12% on News of 54 Billion Won Paid-in Capital Increase

Smack is showing weakness in the early trading session. The news of a 54 billion KRW rights offering is interpreted as having an impact on investor sentiment.

As of 9:13 AM on the 3rd, Smack is trading at 2,570 KRW, down 12.59% (370 KRW) from the previous day.

Smack, a company specializing in machine tools and robot automation solutions, announced the day before that it had decided on a 54 billion KRW rights offering through a shareholder allocation followed by a public offering. Through this rights offering, the company aims to acquire the machine tool division of Hyundai Wia together with Rilson PE Partners and further strengthen its position in the global machine tool market.

The scheduled issue price for the new shares is 1,924 KRW per share. The number of shares to be issued is 28 million. The subscription period for existing shareholders is from June 16 to June 17. The public subscription will take place over two days starting June 19. The payment date is scheduled for June 24. Choi Young-seop, CEO of Smack, plans to fully participate by subscribing 100% of the allocated shares in this rights offering.