[Market Focus] POSCO Future M Surges Over 15% After Rights Offering Price Set

On July 18, POSCO Future M showed strong performance in early trading. This came after the company finalized the issue price for its rights offering the previous day and announced plans to raise 1.1 trillion won in capital.

As of 9:38 a.m. on this day, POSCO Future M was trading at 151,500 won, up 20,300 won (15.47%) from the previous trading day.

POSCO Future M announced the previous day that it had set the issue price for the rights offering at 96,400 won. As a result, the expected amount to be raised was determined to be 1.107 trillion won.

With the issue price finalized, the subscription process for shareholders and the general public will proceed as planned. Employee stock ownership association subscriptions will take place on July 21, followed by subscriptions for existing shareholders on July 21 and 22. If there are any unsubscribed shares, a public offering for the general public will be held on July 24 and 25. Once payment for the new shares is completed on July 29, the rights offering process will conclude with the listing of the new shares on August 8.

Based on the previous day's closing price of 131,200 won, the price gap between the market price and the issue price is 36.1%. Since the stock price is significantly higher than the issue price, the rights offering is considered attractive from a pricing perspective.

However, analysts have mixed views on the stock's outlook. This month, six securities firms released analysis reports on POSCO Future M. Of these, three set their target price at 160,000 won. In contrast, two firms projected a target price range between 140,000 won and 143,000 won. Korea Investment & Securities, the lead underwriter for the rights offering, did not provide a target price.