Sambu Construction Announces 1,352% Dilutive Stock Issuance for Debt-to-Equity Swap Under Rehabilitation Plan

Sambu Construction received court approval of its rehabilitation plan on June 26, 2026 and decided to issue 115,010,416 new shares via a third-party allotment for debt repayment.
The capital increase is a debt-to-equity swap with no cash inflow, allocating shares to creditors. The dilution ratio is 1,352% relative to the pre-issuance shares of 8,506,734 shares.
The issue price is the face value of 1,000 won per share. The previous trading price was 347 won before the stock halt on April 1, 2025, and no market price currently exists.
Under the rehabilitation plan, the company will execute a first stock consolidation, debt-to-equity conversion, second stock consolidation, and then the new shares are expected to be listed on September 1, 2026.
Creditors receiving shares include Korea Asset Trust, DYD, Hyundai Engineering & Construction, etc. Fractional shares will be canceled.
[AI Summary]Sambu Construction confirms a massive dilutive debt-to-equity swap as part of court-led rehabilitation, imposing severe equity risk on existing shareholders. With no fresh capital, the balance sheet restructuring offers limited operational improvement, and the stock faces significant downward pressure upon relisting.