 |
[Alpha Biz=(Chicago) Reporter Paul Lee] CJ CGV shares have fallen below 10,000 won for the first time in 15 years since 2008. It recently announced a financing plan worth 1 trillion won.
Although it is in the name of improving financial structure and investing in new businesses, the outlook is not bright as online video service (OTT) platform companies are making strides amid worsening investor sentiment.
Stock industry sources stressed that stock price volatility should be approached from a mid- to long-term perspective, expecting it to increase in the short term.
According to Market Point on the 25th, CJ CGV closed at 9,950 won on the 23rd, down 5.24% from the previous trading day. It is the first time since October 2008 that stock prices have fallen below KRW 10,000. In particular, it fell 31.38% in three trading days after announcing a 1 trillion won funding plan on the 20th.
This is because CJ CGV's KRW 1 trillion funding plan, including a paid-in capital increase, was a negative factor. Earlier, CJ CGV held a board meeting on the 20th and decided to increase its capital by 570 billion won. At that time, 74.7 million new shares will be issued at 7,630 won per share, about half of the closing price of 14,500 won. As a result, the total number of shares issued by CJ CGV will increase from 47,728,537 to 122,428,537.
CJ CGV has been in the red for three consecutive years from 2020 to last year, with operating losses of 388.7 billion won and 241.4 billion won.
CJ CGV's fall has led to worsening investor sentiment across the group's affiliates, driving down stock prices. In particular, the holding company CJ fell 18.96% this month due to CJ CGV's paid-in capital increase, although its unlisted subsidiaries CJ Olive Young and CJ Foodville performed well in the first quarter of this year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
