Amkor Technology Inc experienced notable downward pressure in premarket trading on Friday, with its shares falling 6.8% following an announced secondary sale by the company's largest shareholder.
The Kim Family sold 10 million common shares through an underwritten public offering at a price of $48.75 per share. The offering was conducted via 915 Investments, LP, an investment vehicle associated with family members and Susan Y. Kim, who is Amkor's Board Chairman. The selling stockholder also granted the underwriter a 30-day option to purchase up to an additional 1.5 million shares.
The transaction will not channel any proceeds to Amkor itself; all funds from the sale will go to the existing shareholder. Following completion of the offering, the Kim Family is expected to retain ownership of slightly more than 49% of Amkor's outstanding common stock.
In public remarks included with the filing, Susan Y. Kim said, "The Kim family remains Amkor’s largest investor, confident in the Company’s strategic vision and we believe Amkor is in a unique position as a globally diversified OSAT." The company provides semiconductor packaging and test services, a specialty noted in the disclosure of the sale.
Goldman Sachs & Co. LLC is acting as the sole bookrunning manager for the offering. As part of the transaction mechanics, the selling stockholder has agreed to a 180-day lock-up period on the remaining shares they hold. Separately, Amkor has committed to a 75-day restriction on its ability to offer or sell additional shares, with both lock-up commitments subject to certain exceptions described in the offering documents.
The market reaction was immediate in premarket trading, reflecting investor sensitivity to a large block sale by the controlling shareholder, even as the family preserves a position of majority influence. The sale, the secondary nature of the offering, the underwriter's overallotment option and the temporary restrictions on further share issuance are the key structural elements investors will monitor as the offering proceeds.
Disclosure: The company will not receive proceeds from the offering; details of timing and any exercise of the underwriter's option were included in the filing.