[Feature Stock] Lino Industrial, plunges over 14% due to major shareholder's plan to sell 7 million shares
[Feature Stock] Lino Industrial, due to major shareholder's plan to sell 7 million shares, the stock price drops over 14%

Lino Industrial’s stock plummeted 14% at the opening session following news of the largest shareholder’s large-scale share sale plan.

According to the Korea Exchange, on the 27th morning, Lino Industrial traded at 106,100 Korean won during the session, down 18,300 won (-14.71%) from the previous trading day. The intraday low was 105,900 won, and the opening price was 113,800 won.

The weak stock price is interpreted as being influenced by the announcement of the share sale plan by the largest shareholder, Director Lee Chae-yoon, which has put short-term supply and demand pressure on the stock. Lino Industrial previously announced on the 24th that Director Lee plans to sell 7 million common shares through over-the-counter transactions from the 26th of next month to June 24th.

The sale amount accounts for 9.18% of the total issued shares. Based on the closing price of 123,300 won on the 23rd, the scale is approximately 863.1 billion won. The company explained that this move aims to manage assets by selling the shares it holds.

The market generally interprets large-scale disposal of shares by the major shareholder as a potential signal of selling at high levels, which could lead to a significant short-term sell-off, dampening investor sentiment.

However, Lino Industrial is regarded as a company that maintains competitiveness in the semiconductor testing field based on Lino Needle technology. Its leading position in the global semiconductor testing market, the introduction of 2-nanometer process technology, and the anticipated benefits from the proliferation of edge artificial intelligence (AI) are also worth looking forward to.

Previously, the securities industry predicted that Lino Industrial’s operating profit this year might surpass 200 billion won for the first time, and target stock prices were raised. The recent stock price plunge is interpreted more as a reflection of short-term supply and demand concerns caused by the major shareholder’s share sale, rather than an indication of medium- to long-term growth potential.