They started packing their bags in the Korean stock market… ‘Voluntary decommissioning’ increased to record high
https://v.daum.net/v/20241117180501720
Stock market in recession… The role of providing corporate money ‘disappears’
Minimum paid-in capital increase in 12 years… Funding ‘shake’
The burden of boosting the stock price, such as increased dividends and share purchases, increases.
The IPO market is also ‘cold wind’… 4 companies give up listings in one month
As the Korean stock market continues to slump, difficulties in raising funds for listed companies have increased. The funds raised through paid-in capital increase have decreased to the lowest level in 12 years, and a cold wind is blowing in the initial public offering (IPO) market.
According to the Korea Exchange on the 17th, the amount of paid-in capital increase announced by companies listed on the stock market until this day this year was 4.5807 trillion won. This year as a whole, it is expected to remain at half the level compared to last year (KRW 9.4799 trillion). It is certain that it will hit the lowest level in 12 years since 2012 (KRW 3.2234 trillion), when the stock market was shaken by the European financial crisis. Analysis suggests that the decrease in the amount of capital increase is due to the growing concern about undersubscription due to the sluggish stock market. The KOSDAQ and KOSPI indices are ranked first and second in terms of decline rate among the world’s major stock markets this year. Increasing demands for shareholder return, such as value-up disclosure and dividend expansion, also served as a burden for companies to open their hands to the stock market.
strategy
Financing is difficult, but stock price stimulus costs are rapidly increasing… ‘Voluntary decommissioning’ doubles
This year’s paid-in capital increase was only 4.5兆… Lowest in 12 years
As the KOSPI index continues to decline, the function of the funding window, which plays a key role in the stock market, is being shaken. The amount of funds raised by companies listed on the stock market this year through paid-in capital increase is expected to be the smallest in 12 years. This is because the stock market continues to slump and investors are withdrawing. As companies try to raise their stock prices by holding on to investors, they are forced to increase spending to boost their stock prices, such as purchasing or canceling their own shares and increasing dividends, let alone raising funds.
The burden of maintaining listing is rapidly increasing.
Meanwhile, the cost that companies spend to maintain their listing is increasing every year. Depending on the size of the listed company, hundreds of millions to billions of won are spent on general shareholders’ meeting costs and audit costs. It is also very inconvenient to have to ask for the consent of minority shareholders every time an important decision is made. This year, with the implementation of the value-up policy, the burden on listed companies has increased as demands for increased dividends and share purchases have intensified.
?????
As expected, the correct answer is not to become a director.
Starting today, the water temperature under Mapo Bridge must have dropped a lot…