CJ CGV Rights Offering Green Light... Employee Stock Ownership Pre-Subscription Rate Exceeds 90%
Pre-subscription of 6.74 million shares, 90.2% of 7.47 million shares allocated for employee stock ownership
“Expectations for theater industry recovery and performance improvement... Positive outlook for existing shareholders' subscription”
CJ CGV announced on the 24th that the pre-subscription rate for employee stock ownership association members (employees and executives) reached 90.2%. CJ CGV conducted the pre-subscription for association members starting from the 16th, and as of the 22nd, the number of shares applied for was approximately 6.74 million, which corresponds to 90.2% of the 7.47 million shares allocated to the association. Previously, CJ CGV had preferentially allocated 7.47 million shares, which is 10% of the 74.7 million shares issued in the paid-in capital increase, to the employee stock ownership association.
After finalizing any changes, CJ CGV will confirm the number of shares per individual and proceed with payment procedures, planning to conduct the employee stock ownership subscription on the 6th of next month. Choi Jeong-pil, Head of Management Support at CJ CGV, stated, "The success of the employee stock ownership subscription appears to be due to the current stock price level being attractive compared to the first issuance price of 5,890 KRW decided on the 27th of last month. It is interpreted as reflecting confidence in the recovery of the theater industry and expectations for improved performance," adding, "We expect this to have a positive effect on the upcoming subscription by existing shareholders."
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Meanwhile, CJ CGV plans to continue the employee stock ownership subscription until the end of this month and will finalize the issuance price of the new shares for the paid-in capital increase on the 1st of next month. Subsequently, the subscription for existing shareholders will take place on the 6th and 7th, followed by the general public subscription on the 11th and 12th, with the new shares being listed on the 27th of the same month.
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