STX stocks plunge after announcing issuance of forfeited shares worth $59M

Finance

STX stocks plunge after announcing issuance of forfeited shares worth $59M

Published: 20 Oct. 2023, 15:02

KIM JU-YEON
kim.juyeon2@joongang.co.kr

STX, a publicly held trading company headquartered in Changwon, South Gyeongsang. [STX]

STX, a publicly held trading company based in Changwon, South Gyeongsang, decided to issue forfeited shares worth 80 billion won ($59 million) to expand its capital in a general public offering.

The company's announcement came after trading closed on Thursday.

Its shares were down more than 20 percent in the morning trading session on Friday.

As of Friday at 3 p.m., STX is being traded at 11,130 won ($8.2), down 2,340 won or 17.36 percent, from the last trading session.

There are 23.65 million existing shares issued, and the company plans to issue 7.36 million new shares.

"The major shareholder AFC Mercury will also participate in this rights issue with over 10 billion won," an STX spokesperson said.

STX plans to use the capital to expand its supply chain for secondary battery materials such as nickel, lithium and graphite.

"As a secondary battery material company, we will expand and strengthen our supply chain mainly in Southeast Asia, South America and Africa. We will take the lead in changing the paradigm of trade transactions through Trollygo as well as through our trading expertise in raw materials, industrial goods and eco-friendly resources," the spokesperson added.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]