[Special Stock] CJ CGV Continues Decline for 2 Consecutive Trading Days Following Rights Offering News

CJ CGV, which has raised funds through a paid-in capital increase, has been falling for two consecutive days.

As of 9:37 a.m. on the 22nd, CJ CGV was trading at 10,700 won, down 6.47% from the previous trading day. Shortly after the market opened, it dropped to 10,500 won, down 8.22%, hitting a 52-week low.

CJ CGV's stock price plummeted from the previous day following news of a paid-in capital increase worth 570 billion won, roughly equivalent to its market capitalization. The stock fell 21.1% the day before.

The newly issued 74.7 million shares amount to 1.5 times the total pre-increase outstanding shares of 47,728,537, making dilution of existing shareholders' equity inevitable. The planned issuance price of the new shares is 7,630 won, only about half of the stock price of 14,500 won just before the announcement of the capital increase, causing downward pressure, which individual investors are concerned about. The holding company CJ plans to participate in the shareholder allocation paid-in capital increase with about 60 billion won and intends to contribute its stake in its subsidiary CJ OliveNetworks as an in-kind contribution through a third-party allocation paid-in capital increase.

The purpose of raising funds is to stabilize the financial structure and promote new businesses, but there are also concerns due to the recent bleak outlook for the movie theater business.

This content was produced with the assistance of AI translation services.