South Korea's financial regulator is planning to investigate Korea Zinc Co.'s recent share sale plan due to concerns about potential unfair trading practices.
The company's stock experienced a significant decline of 30% after Chairman Choi Yun-beom announced plans to issue 3.73 million shares, which represents around 18% of the company's outstanding stock.
The share issuance is priced at approximately 670,000 won per share and aims to raise about $1.8 billion, primarily for debt repayment. This regulatory review highlights the increased vigilance of financial authorities in monitoring corporate actions that could impact market integrity.