Semiconductor test socket maker Lino Industrial’s shares were down more than 14% on Monday, a move widely attributed to news that its largest shareholder plans to sell a sizable stake.
According to the Korea Exchange, Lino Industrial was trading at 106,500 won as of 9:55 a.m., down 14.39% from the previous session.
The company said late April 24 that CEO Lee Chae-yoon plans to sell 7 million common shares through after-hours block trades over 30 days from May 26 to June 24. The sale would amount to 9.18% of total shares outstanding and was valued at 863.1 billion won based on the April 23 closing price of 123,300 won.
Lino Industrial said the actual price per share could differ, adding that the purpose of the transaction is “asset management through the sale of shares held.”
Some in the securities industry have also suggested the plan could be part of preparations to fund gift taxes for transferring shares to his children, citing Lee’s age of 75.
Lino Industrial ranks sixth by market capitalization on the KOSDAQ and posted its best-ever annual results last year. On a consolidated basis, revenue rose 33.9% from a year earlier to 372.5 billion won, while operating profit increased 42.5% to 177.0 billion won. Its operating margin climbed 2.9 percentage points to 47.5%, an unusually high level for the industry.
* This article has been translated by AI.
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