By Kwanwoo JunSK Innovation's shares fell Monday as its new $900 million rights issue plan unnerved investors. Samsung Securities analysts Cho Hyun-ryul and Kim Young-uk said in a note Monday that they expect the new rights issue to increase the number of SK Innovation shares by 9% and lower the stock price by 3.3% as a result. A stock's value can be diluted by an increased number of shares on the market. Still, the Samsung analysts maintained their buy rating and KRW240,000 target on the stock, forecasting limited impact from the rights issue on the company's long-term valuation despite the near-term overhang risk. Write to Kwanwoo Jun at kwanwoo.jun@wsj.com(END) Dow Jones NewswiresJune 25, 2023 21:48 ET (01:48 GMT)Copyright (c) 2023 Dow Jones & Company, Inc.

Source: Wall Street Journal June 26, 2023 01:59 UTC