[Market Focus] KD Soars Over 20% on News of Rights Offering Withdrawal

KD, a construction and real estate development company, surged more than 20% in early trading on December 11 following news of the withdrawal of its rights offering.

As of 9:09 a.m. on this day, KD shares were trading at 714 won on the KOSDAQ market, up 21.02% from the previous trading day. The stock opened at 670 won and at one point during the session climbed to 760 won, nearing the upper price limit.

The previous day after the market closed, KD announced that it would withdraw its plan for a rights offering of 10 billion won, which was to be conducted through a shareholder priority public offering. In October, KD had stated that the rights offering was intended to raise funds for debt repayment and operating expenses.

The company explained, "After submitting the securities registration statement, the Financial Supervisory Service requested corrections and supplementary reviews twice. As the process of the rights offering became prolonged, we determined that there was a risk of causing confusion among existing shareholders and new investors." The company added, "Considering all circumstances, including the current difficulty in properly evaluating the company's value, we decided to cancel the remaining schedule in consultation with the lead underwriter."