PARU Announces 2:1 Reverse Stock Split to Stabilize Share Price, Halving Outstanding Shares
PARU has decided to conduct a reverse stock split (2 shares consolidated into 1). The par value will increase from 500 won to 1,000 won, reducing total shares outstanding from 41,804,315 to 20,902,157.
The purpose is to stabilize the stock price and enhance corporate value. No change in enterprise value except a minor capital reduction of 500 won due to fractional shares; no dilution for existing shareholders.
The new shares are expected to be listed on August 27, 2026, with trading suspended from August 4 to 26. The decision is subject to approval at the extraordinary general meeting on July 16, 2026.
[AI Summary]The reverse stock split is a typical measure to artificially boost the stock price for trading stability. Since the underlying enterprise value remains unchanged, the price effect may be temporary. Investors should focus on the company's fundamental performance improvements.