Hynix Semiconductor Inc. (000660) fell to the lowest in five months in Seoul trading after Korea Exchange Inc., the nation’s bourse operator, ordered the chipmaker to comment on speculation it would sell new shares.
Hynix isn’t considering a new-share sale, the world’s second-largest computer-memory maker said in a filing after the bourse’s order today. The stock dropped as much as 8.2 percent, the lowest intraday level since Jan. 12, before trading 4.2 percent lower at 27,500 won as of 11:17 a.m. in Seoul. The benchmark Kospi Index (KOSPI) declined 0.4 percent.
“Investors seem to be concerned about a possible share dilution,” David Choi, an analyst with KTB Investment & Securities Co. in Seoul. “Still, I see that the pace of the decline is overdone.”
A group of creditors plans to sell all or part of a 15 percent stake in Hynix that it gained through a government- initiated bailout of the chipmaker in 2001 following an industry downturn. The nine financial institutions are still discussing ways to sell their stake and may announce the sale schedule by the end of this month, Kim Sun Gyu, a spokesman for Korea Exchange Bank, the lead creditor, said June 8.
Shareholders will review “flexible” ways to divest their holdings and may consider selling new stock, Ryu Jae Han, chief executive officer of stakeholder Korea Finance Corp., said April 1.
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