[Special Stock] SK Ino Plummets Over 7% on 1.2 Trillion Won Rights Offering
SK Innovation is experiencing a sharp decline of over 7% on the 26th. The news of a planned rights offering worth approximately 1.2 trillion KRW appears to have driven the stock price down.
As of 12:36 PM on the same day, SK Innovation is trading at 169,000 KRW on the KOSPI, down 7.45% from the previous trading day.
On the 23rd, after market close, SK Innovation announced a rights offering to raise 1.18 trillion KRW. Large-scale rights offerings typically dilute share value, acting as a factor for stock price decline.
![[Special Stock] SK Ino Plummets Over 7% on 1.2 Trillion Won Rights Offering](http://www.asiae.co.kr/news/img_view.htm?img=2022091517163933921_1663229799.jpg)
In the securities industry, this rights offering is seen as a negative factor for the stock price, but its impact is expected to be short-term.
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Hyun-ryeol Cho, a researcher at Samsung Securities, stated, “Since this was an unexpected capital increase in the capital market, it may weaken investor sentiment in the short term. However, there is anticipation for business expansion due to the capital increase, and the rate of increase in the number of shares from this offering is minimal compared to previous rights offerings such as Hanwha Solutions or Lotte Chemical.”
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