KOSDAQ Firms Turn to Third-Party Share Sales in Mid-July Cash Drive

A cluster of KOSDAQ-listed companies moved to raise fresh equity on July 13 and 14, using third-party allotment share sales to bring in cash from designated investors — with Graphy’s 12.1 billion won ($8–9 million) placement, partly subscribed by state-linked Korea Securities Finance Corp., the largest of the group.

The Deals on the Table

Graphy (318060) approved the biggest of the offerings, a roughly 12.1 billion won third-party allotment disclosed on July 13. The company earmarked the proceeds for purposes including the acquisition of securities in another corporation, and named Korea Securities Finance Corp. among the designated subscribers — an unusual backer for a company of this size, given the institution’s role in the broader securities-funding system.

Two smaller placements followed on July 14. Newintek (012340) set out to raise about 3 billion won through a third-party allotment, citing operating funds among its stated uses. KM Pharmaceutical (225430) approved a 1 billion won offering on the same basis, filing a major-matters report on the capital increase decision with the Financial Supervisory Service’s electronic disclosure system.

Separately, Eugene Technology (240600) took a different route on July 13, approving a bonus share issue of 0.2 new common shares for each share already held rather than raising new money.

Cash Injection Versus Paper Adjustment

The distinction between the two mechanisms matters for shareholders. A third-party allotment — the structure chosen by Graphy, Newintek and KM Pharmaceutical — issues new shares to specific named investors rather than to existing holders, bringing outside capital directly onto the balance sheet. It dilutes current shareholders but delivers usable cash, which is why it is a common tool for smaller listed firms that need working capital or funds for acquisitions without arranging debt.

Eugene Technology’s bonus issue does the opposite: it raises no new money at all. Instead it capitalizes existing reserves into additional shares, increasing the share count while leaving the company’s underlying value unchanged. At a ratio of 0.2 shares per share, a holder of 100 shares would receive 20 more. Such issues are often used to improve liquidity in a stock and signal management confidence, but they do not strengthen the company’s cash position.

Why the Grouping Stands Out

Individually, none of these transactions is large by market standards. Taken together over two trading days, they point to continued reliance on equity financing among smaller KOSDAQ names, where access to bank lending can be tighter and third-party placements offer a faster path to capital.

Graphy’s deal is the one most worth watching. The stated aim of funding the purchase of securities in another company suggests the placement is tied to an investment or acquisition rather than routine operating needs, and the participation of Korea Securities Finance Corp. lends the offering a degree of institutional weight that the operating-fund raises by Newintek and KM Pharmaceutical do not carry.

Points to Track From Here

For each of the three cash-raising firms, the key follow-through will be the identity and lock-up terms of the subscribers, the issue price relative to the current market price, and — for Graphy specifically — disclosure of exactly which corporate securities the raised funds are meant to acquire. Those details, filed through subsequent DART disclosures, will determine whether these placements read as growth financing or as balance-sheet repair. Dilution from the new shares will weigh against any operational upside until the use of proceeds becomes concrete.