The stock price is falling on the news that it has decided to issue a rights issue worth 320 billion won.
As of 9:29 am on the 29th, Jeju Air was trading at 14,950 won, down 1,600 won (9.67%) from the previous trading day.
Shortly following opening, it plunged to 14,000 won and set a new 52-week low.
Earlier, Jeju Air announced on the 26th that it had decided to issue a capital increase of 320 billion won to shareholders. The expected issuance price per share is 11,750 won, and the total number of shares to be issued is 27,234,043 shares.
The company plans to use the funds secured through the capital increase to introduce the next-generation aircraft, the B737-8.
Large-scale rights offerings often act as a catalyst for share price declines due to the dilution effect of the equity value.
Reporter Eunji Cha, Hankyung.com [email protected]