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| 동원산업 (사진=연합뉴스) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] Dongwon Industrial held a board meeting on the 16th and decided to retie all 10,460,770 shares of its own shares.
This is one-fifth (22.5%) of the total number of shares issued. Due to large-scale stock price stimulus measures, Dongwon Industrial closed at 39,550 won, up 25.76% on the same day. In the afternoon, it reached the upper limit (40,850 won).
The estimated amount retirement of treasury stock by Dongwon Industrial is about 329 billion won at the closing price on the 15th, and the base date for incineration is May 2. With the incineration of stocks, the total number of shares issued will fall from 46,482,665 to 36,021,895. If stocks are retired, the number of stocks distributed in the market will decrease, which will increase the net profit per share (EPS), which will be a positive factor for stock prices.
Dongwon Industrial announced a plan to incinerate 3.5 million treasury shares, or 7% of the total shares issued, while incinerating the remaining treasury shares over the next five years. Securities industry sources say local listed companies have recently been retiring their own shares, but they are particularly unusual in accepting the Dongwon industry's decision.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
