T'way Holdings, designated as a management stock due to failing to meet market capitalization requirements, has seen its shares decline by over 20% on the first day of trading after the designation. Although there was a slight rebound in the afternoon, investor sentiment remains negative, making recovery difficult.
According to the Korea Exchange on September 21, T'way Holdings was trading at 915 won, down 148 won (13.92%) from the previous trading day as of 1:42 PM. The stock opened at 958 won and fell to as low as 830 won before recovering slightly in the afternoon. The intraday high was 995 won, but the stock has not regained the previous closing price of 1,063 won since trading resumed.
The Korea Exchange designated T'way Holdings as a management stock on September 18 after the company failed to meet the market capitalization requirement of 30 billion won for 30 consecutive trading days, leading to a suspension of trading. The trading suspension was lifted on the same day. Concerns about the company's declining stock price had raised the possibility of its designation as a management stock.
Management stocks are designated by the exchange to inform investors about companies that may face delisting. If the reasons for the designation are not resolved, it could lead to additional scrutiny regarding the company's eligibility for listing.
Investor sentiment has worsened particularly due to financial burdens related to its affiliates. According to the Financial Supervisory Service, T'way Holdings decided on September 18 to guarantee a foreign currency loan limit for Trinity Airlines, amounting to 59.62896 billion won, which represents 63.32% of its equity. The guarantee period is from that date until June 30 of the following year.
* This article has been translated by AI.
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