The Samsung SDI share price cut was confirmed on Wednesday, as the company reduced the pricing of its upcoming share offering by 14%. This move comes amid a global market sell-off triggered by fears over U.S. tariffs on Chinese goods.
Previously, Samsung SDI planned to offer shares at 169,200 won. However, due to recent market instability, the new price is set at 146,200 won ($98.41). Importantly, the final pricing will be confirmed on May 19, allowing for adjustments if market conditions shift further.
In the last week, the company’s stock has dropped by 5%. Consequently, investor concerns have deepened, with fears that escalating trade tensions may push the global economy into a downturn. Year to date, Samsung SDI’s shares have fallen by 29.5%, reflecting broader market unease.
To fund growth initiatives, Samsung SDI first announced in March that it would issue 11.82 million new shares. The proceeds will support a major joint venture with General Motors in the United States. Additionally, the funds will help expand the company’s factory capacity in Hungary, among other projects.
Meanwhile, the South Korean won tumbled to a 16-year low on Wednesday. This sharp decline adds pressure on export-driven companies like Samsung SDI, further complicating its fundraising efforts.
According to a company official, the final size and pricing of the share offering could still change. Ultimately, the decision will depend on how the market performs over the next few weeks.
Overall, Samsung SDI’s strategic move aims to adapt to fast-changing financial conditions while ensuring it can continue to invest in its global operations.
