Heng Sheng Group Amends Capital Increase Reflecting Stock Merger: 5.6M Shares, 16.8B Won Raised, Dilution of 109.5% Finalized
Heng Sheng Group filed a correction to its capital increase decision following the effectiveness of a 5-to-1 stock merger on July 24, 2026. The number of new shares was adjusted from 28 million to 5.6 million and the issue price from 600 won to 3,000 won, while the total proceeds of 16.8 billion won and the third-party allotment remain unchanged.
The finalized capital increase results in a massive dilution of approximately 109.5% compared to existing shares of 5.11 million. The issue price of 3,000 won represents a 42.8% premium over the theoretical post-merger price of 2,100 won. Proceeds will be used for operating purposes including purchasing, marketing, and R&D costs.
The third-party allottees are Hui Mei Nga related party with 4 million post-merger shares, Liu Huan with 1 million shares, and Hui Ka Shing with 0.6 million shares, all subject to a one-year lock-up.
[AI Summary]The dilutive impact of Heng Sheng Group's capital increase remains extremely severe even after the stock merger, while the fund usage plan is defensive and insufficient for growth creation. Governance risk persists due to related-party allotment, likely weighing on the stock price.
KOSDAQ Filing Information
[Correction of Description] Report on Major Events (Decision on Paid-in Capital Increase)
Company: Heng Sheng Holding Group (900270)
Submission: Heng Sheng Holding Group Company Limited