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[Alpha Biz=(Chicago) Reporter Kim Jisun] Medipost, a company specializing in stem cell therapy, will push for a KRW 120 billion public offering to raise capital to raise costs for Phase III clinical trials in the U.S. for the osteoarthritis treatment "Cartistem."
Medipost's stock price on the 26th closed at 9,450 won, down 30% (4,050 won) from the previous day's close. The large-scale paid-in capital increase plan announced by the company on the 25th is cited as the main reason for the lower limit. Medipost was established in 2000 as a stem cell company and listed on the KOSDAQ in 2005. It is the No. 1 cord blood bank operator in Korea and develops and sells stem cell therapy drugs and health functional foods for women.
Medipost announced on the 25th that it plans to raise 119.9 billion won by issuing 13.21 million common shares through a general public offering of disqualified shares after shareholders' allocation. Considering that the total number of shares issued by the company (including preferred stocks) is 24.74 million, the issuance of new shares amounts to 53%.
The estimated issuance price is set at 9,080 won per share. The discount rate of 32% is applied to the previous day's closing price (13,500 won). In the wake of the massive capital increase plan, the market capitalization fell to around KRW 190 billion on the same day.
Although stock prices have faltered, the company says it is a growth fund to enter the U.S. market. Medipost will invest funds raised through the capital increase in Medipost America, a subsidiary, to give priority to the cost of Cartistem's Phase III US clinical trials.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
