[Special Stock] CJ CGV Plummets 16% on News of Large-Scale Paid-in Capital Increase

CJ CGV plummeted following news of a large-scale paid-in capital increase.

As of 9:27 AM on the 21st, CJ CGV was trading at 12,150 KRW, down 16.21% compared to the previous day.

CJ CGV's board of directors resolved the paid-in capital increase worth 570 billion KRW the day before. This amount is roughly equivalent to the market capitalization of 692.1 billion KRW based on the previous day's closing price. A total of 74.7 million common shares will be issued at 7,630 KRW per share, and the paid-in capital increase will be conducted through a rights offering to existing shareholders followed by a general public offering of any unsubscribed shares.

The total number of issued shares will increase from 47,728,537 to 122,428,537. The holding company CJ plans to participate in the rights offering with approximately 60 billion KRW and, separately, intends to contribute its stake in the subsidiary CJ OliveNetworks as an in-kind contribution through a third-party allotment paid-in capital increase.

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