Cyndin (9933), the largest domestic construction contractor embroiled in a 19.6 billion NTD bad debt scandal, saw its shares hit limit down for four consecutive days. However, after announcing a private placement and dividend change last evening, it opened at 25.1 NTD today. Positive market response pushed the stock to reach 28.2 NTD, hitting the limit up, with trading volume exceeding 60,000 shares, ranking it at the top of all stocks in the market. Yet, analysts caution that despite the rebound, the previous sharp declines could trigger selling pressure from investors still holding their positions, advising short-term investors against chasing the price upwards.

The turmoil originates from Cyndin's U.S. subsidiary's involvement in the renovation of the aging BKRF oil refinery, which faced a restructuring application from the parent company, preventing the recovery of NT$19.604 billion in accounts receivable. This has elevated market concerns about the potential erosion of Cyndin's capital structure and profitability.

For restoring market confidence, Cyndin has decided to proceed with a private placement with a maximum issue of 90,000 shares at a price not less than 80% of the reference price, pending approval at the shareholders' meeting on May 28. The previously announced cash dividend of 2 NTD per share was changed to a combination of 1 NTD cash and 1 NTD stock dividend.

Analyst Tsai Tsung-Yuan remarked that while the scale of this setback is significant, eroding over two-thirds of the paid-in capital, Cyndin’s fundamental value remains intact, citing ongoing public infrastructure projects and its presence in Southeast Asia, India, and the U.S. Investors should monitor the price movement closely, specifically looking for stabilization after a potential retracement.