Shares of KS Industry are experiencing a significant drop on the first day of trading following a 75% capital reduction. The decline is attributed to weakened investor sentiment after the company received an 'opinion rejection' from its auditor in its recently submitted semi-annual report.
As of 1:42 PM on August 18, KS Industry's stock was trading at 700 won, down 151 won (-17.74%) from the previous trading day. The company had its trading suspended from July 24 to August 14 due to the capital reduction. The last trading price before the suspension was 311 won on July 23.
The resumption of trading follows the 75% capital reduction, which KS Industry implemented by consolidating four common shares with a par value of 500 won into one share. The company cited the need to improve its financial structure by offsetting losses as the reason for the reduction.
The drop in stock price is likely linked to the auditor's rejection of the opinion in the semi-annual report submitted on August 14. The auditor, Samil PwC, cited uncertainties regarding the company's ability to continue as a going concern.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.