T’way Holdings shares slid into a 52-week low Thursday as investors reacted to the company’s announcement of a capital reduction without compensation.
According to the Korea Exchange, as of 2:26 p.m., T’way Holdings was trading at 268 won, up 37 won, or 12.13%, from the previous session. The stock fell as low as 253 won during the session, marking a new 52-week low.
In a filing Wednesday, the company said it decided on an 80% capital reduction by consolidating five common shares into one. After the reduction, paid-in capital will fall to 11.3 billion won from 56.6 billion won, and the number of shares outstanding will drop to 22.63 million from 113.16 million. The company said the move is intended to improve its financial structure by offsetting accumulated losses.
A capital reduction without compensation lowers capital by cutting the number of shares to eliminate accumulated deficits. Because it does not bring in cash or directly improve operations, it is often viewed as a sign of financial strain and can weigh on share prices.
The record date for the reduction is July 3, and the relisted shares are scheduled to begin trading July 24. Trading in the stock will be suspended July 22-23 under the timetable. The plan is to seek final approval at a shareholders meeting scheduled for June 19.
* This article has been translated by AI.
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