Korea Zinc Co. experienced a sharp drop in its shares after announcing a significant capital raise. The metal producer, which is currently involved in a takeover battle, disclosed plans to issue 3.73 million new shares at a price of 670,000 won each, with the aim of raising around 2.5 trillion won ($1.8 billion).
The decline in stock value reflects investor concerns about dilution and the potential impact of the new share issuance. This development comes as the company faces increased competition and heightened scrutiny from market participants.