Gaon Cable, a manufacturer specializing in electrical wires, is experiencing a surge in stock prices following news of securing significant contracts in the U.S. market.
As of 9:49 a.m. on June 18, Gaon Cable's shares rose by 52,500 won (15.40%) to 393,500 won, according to the Korea Exchange. Early in the trading session, the stock climbed over 22%, reaching as high as 416,000 won. Gaon Cable has recorded gains for four consecutive trading days, including hitting the upper limit the previous day.
The increase in stock price is attributed to reports of expanded contracts related to artificial intelligence (AI) data centers and power networks in the U.S.
According to financial investment sources, Gaon Cable's U.S. subsidiary, LSCUS, recently signed a bus duct supply contract worth approximately 4.7 trillion won. Bus ducts are essential infrastructure for AI data centers, providing stable power supply for high-capacity electricity. Additionally, Gaon Cable's U.S. subsidiary has secured long-term supply contracts for bus ducts exceeding 5 trillion won with major global tech companies.
Meanwhile, Gaon Cable also announced a stock split on the same day. The company plans to issue 13,234,492 new common shares. This stock split will allocate 0.8 new shares for every existing common share held by shareholders. The record date for the new share allocation is set for July 1, with the new shares expected to be listed on July 23.
* This article has been translated by AI.
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