Trinity Air, formerly T'way Air, is pursuing a 5:1 stock consolidation ahead of a shareholder meeting scheduled for the 24th, with the consolidation effective August 11. The move aims to raise the stock price above the 1,000 won threshold introduced by Korean financial regulators on July 1 as a new delisting criterion. Trinity Air's stock closed at 558 won on May 22, remaining below 1,000 won since April 21. Under the new rule, Korean stocks trading below 1,000 won for 30 consecutive trading days face administrative oversight designation, with potential delisting if the threshold is not recovered within 90 days.
Korean Regulators Introduce 1,000 Won Delisting Threshold
The Financial Services Commission and Korea Exchange implemented new delisting requirements on July 1 targeting stocks trading below 1,000 won. Stocks failing to maintain the 1,000 won threshold for 30 consecutive trading days are designated as administrative oversight issues. Companies must then recover to 1,000 won or above for 45 consecutive trading days within a 90-day period to avoid final delisting. Trinity Air's stock has traded in the 500-700 won range since the rule took effect, placing the company at risk of administrative designation on August 12 if current price levels persist.
Trinity Air Consolidates Shares at 5:1 Ratio
Trinity Air scheduled a special shareholder meeting for the 24th to approve the stock consolidation and charter amendments. The consolidation combines five ordinary shares with a par value of 100 won into one share with a par value of 500 won. Total issued shares will decrease from 510.53 million to 102.11 million. Stock trading will be suspended from August 7 through August 28, with consolidated shares listed on August 31. The consolidation theoretically raises the stock price to the late 2,000 won range based on current valuations, providing near-term relief from the new delisting standard.
Company Raised 80 Billion Won Through Third-Party Allocation
Trinity Air completed a third-party allocation on July 1, issuing 97.56 million ordinary shares at 820 won per share to a special purpose vehicle, raising approximately 80 billion won. The company stated the funds will be used for fuel costs and maintenance expenses. The capital raising increased total issued shares from 412.97 million to 510.53 million, a 23.6% increase. The subsequent consolidation reduces the share count to 102.11 million, completing a sequence of capital raising followed by share count reduction.
Trinity Air Amends Articles to Expand Future Capital Options
The shareholder meeting on the 24th includes charter amendments changing the calculation basis for new share issuance limits. The amendments are interpreted as securing capacity for additional capital raising through future rights offerings or third-party allocations. Sono Trinity Group, which acquired Trinity Air, has pursued financial restructuring through bond issuances, stock consolidations, and capital raises. The company cited maintaining appropriate outstanding share counts for stock price stability and enhancing corporate value as the consolidation's purpose.
FAQ
What is Trinity Air's stock consolidation ratio?
Trinity Air is consolidating shares at a 5:1 ratio, combining five ordinary shares with a par value of 100 won into one share with a par value of 500 won. Total issued shares will decrease from 510.53 million to 102.11 million.
When does Trinity Air's stock consolidation take effect?
The consolidation is effective August 11. Stock trading will be suspended from August 7 through August 28, with consolidated shares listed on August 31. The shareholder meeting to approve the consolidation is scheduled for the 24th.
