DAEDONG Maintains 52.78% Stake in DaedongMetal After 1:1 Stock Dividend, Holding 3.37 Million Shares

DAEDONG CORPORATION, the largest shareholder of DaedongMetal, acquired an additional 1,683,100 common shares via a 1:1 stock dividend on April 13, 2026, raising its total holding to 3,366,200 shares.
The stock dividend allocated new shares proportionally to all shareholders, leaving DAEDONG's ownership at 52.78% unchanged while doubling the total outstanding shares from 3,189,166 to 6,378,332.
However, the largest shareholder's stake had already declined from 70.13% to 52.78% due to the conversion of 789,166 shares from convertible bonds issued in 2018, highlighting ongoing dilution risks from convertible instruments.
Based on a pre-dividend market cap of approximately 21.5 billion KRW and a share price of 6,730 KRW, the stock dividend is expected to adjust the share price proportionally without altering the company's fundamental value.
[AI Summary]DaedongMetal's 1:1 stock dividend is a neutral event that increases liquidity without diluting shareholder value. However, the prior decline in the largest shareholder's stake from convertible bond conversion warrants continued monitoring of potential dilution risks. Short-term price volatility is limited, but long-term capital structure changes deserve attention.