JOYWORKS&Co Decides Free Stock Issuance of 3 Shares per 1 Share Resulting in 293% Share Increase Raising Dilution Concerns

JOYWORKS&Co decided on April 17 2026 to issue 3 free shares per 1 existing share, increasing total shares from 4,897,409 to 19,255,889 a 293 percent increase.
The free issuance is funded by capital surplus of 7,179,240,000 KRW with no new capital inflow, proportionally diluting existing shareholders' equity value.
Treasury shares of 111,249 are excluded from the free issuance, with 871 fractional shares from the stock split added to treasury.
[AI Summary]This free stock issuance inevitably dilutes per-share value with no new capital raised, merely converting capital surplus into stated capital. Therefore short-term negative price impact is expected raising concerns about existing shareholder value dilution.