SEJONG Telecom raises ₩28B from parent in private placement

What's the deal? SEJONG TelecomDealroom has a profile for this one. Try Dealroom → will raise 28 billion KRW (about $18.3 million) through a third-party allotment share issue, the company disclosed on July 6. Its largest shareholder, Sejong, is the sole buyer of the new stock.

The terms: The company will issue four million common shares at 7,000 KRW each, with listing set for July 29. It earmarked about 22 billion KRW for operating capital and 6 billion KRW for facilities.

What's the endgame? The raise is aimed at improving SEJONG Telecom's financial structure while funding operations and facilities. Directing the allotment to the parent doubles as a signal of committed ownership and defensive control.

What could go wrong? SEJONG Telecom has tapped shareholders before, including a 202.5 billion KRW issue in the past. Repeated capital raises leave existing and would-be investors weighing dilution against the sincerity of the balance-sheet fix.

The signal: A wave of third-party allotment issues has hit Kosdaq recently, most framed as operating capital or financial restructuring. This deal fits that broader push to shore up finances — here funded internally rather than by outside investors.

Read more: EDaily

Image credit: Mike Cattell