Samchully Bicycle's stock price has surged over 8% in early trading after the company announced a plan for a public buyback and cancellation of its shares worth 12 billion won. This move has sparked investor optimism regarding shareholder returns.
According to the Korea Exchange, as of 9:28 a.m., Samchully Bicycle's shares were trading at 4,640 won, up 350 won (8.16%) from the previous trading day. The stock opened at 4,880 won and briefly reached 4,905 won during the session.
The sharp increase in stock price is attributed to the announcement of the buyback and cancellation plan.
According to the Financial Supervisory Service's electronic disclosure system, Samchully Bicycle plans to publicly buy back 2,408,000 registered common shares at 5,000 won per share, with plans to cancel all of them. The shares targeted for buyback represent 19.42% of the total 12.4 million shares issued, with a maximum total buyback amount of 12.04 billion won.
Notably, the buyback price of 5,000 won is 22.25% higher than the closing price of 4,090 won on the day before the board resolution.
Currently, Samchully Bicycle holds 392,000 treasury shares, which is 3.16% of the total issued shares. Once the buyback is completed, the treasury stock will increase to 2.8 million shares, or 22.58% of the total issued shares.
The buyback period runs from today until September 10. However, the specific timing for the cancellation of the treasury shares has not yet been determined.
Samchully Bicycle stated, "We believe that the gap between market value and the company's actual financial performance cannot be resolved in the short term through improvements in individual business performance. Therefore, we decided on this buyback to provide appropriate liquidity to shareholders while enhancing shareholder value and improving capital efficiency through the acquisition and cancellation of treasury shares."
* This article has been translated by AI.
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