 |
Kumyang Headquarters. (Photo courtesy of Kumyang) |
[Alpha Biz= Paul Lee] Kumyang Co., Ltd., a secondary battery manufacturer listed on the Korea Exchange (KRX), has announced a rights offering worth KRW 405 billion, just five months after withdrawing a similar plan in January.
According to a regulatory filing with the Financial Supervisory Service on June 4, Kumyang will issue 13 million new common shares and 14 million redeemable preferred shares (RPS). The RPS will be issued without voting rights but will carry a 2% annual preferred dividend and a 5% annual compound return. The issue price for all new shares is set at KRW 15,000, representing a 51.5% premium over the previous closing price of KRW 9,900.
All newly issued shares will be purchased by Skaeeb Trading & Contracting Company (STCC), a Saudi Arabia-based firm founded on March 10, 2025, with a paid-in capital of KRW 100 million (approx. USD 72,000).
Kumyang plans to use KRW 250 billion of the proceeds to construct a new battery plant and allocate the remaining KRW 155 billion to produce cylindrical batteries, specifically the 21700 (21mm diameter, 70mm height) and 4695 (46mm diameter, 95mm height) formats.
Kumyang is currently under a one-year improvement period until April 14, 2026, after being designated for a delisting review by the Korea Exchange in March, following a disclaimer of opinion from its external auditor on its 2024 financial report.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
