[Edaily Reporter Shin Ha-yeon ] PPI. INC(062970)is trading lower in early trading following news that the company has decided to conduct a public offering worth approximately 3 billion won.

According to MP Doctor on the 19th, as of 9:24 a.m., KOREA ADVANCED MATERIALS is trading at 2,365 won, down 5.21% from the previous trading day. During the session, the stock also fell as low as 2,285 won, an 8.42% drop from the previous close.

KOREA ADVANCED MATERIALS announced yesterday that it had decided to conduct a public offering worth approximately 3 billion won by issuing 1,298,701 common shares to raise funds for the acquisition of securities in other companies. The planned issue price is 2,310 won per share, and the expected amount to be raised is 2.99999 billion won.

Concerns over the dilution of existing shareholders’ stakes due to the issuance of new shares through the public offering, coupled with the fact that the proposed issue price was set below the previous day’s closing price (2,495 won), are believed to have weighed on investor sentiment.

The public subscription period will run from the 24th to the 25th, with the payment due date set for the 27th. The new shares are scheduled to be listed on the 11th of next month. The entire amount raised is expected to be used to acquire securities of other companies.