TONGYANG Pursues Corporate Value Enhancement via Stock Split Approval to Optimize Outstanding Shares
TONGYANG will seek shareholder approval for a reverse stock split at an extraordinary general meeting on June 22, 2026. The plan merges two existing shares with a par value of 500 KRW into one share with a par value of 1,000 KRW, aiming to optimize the number of outstanding shares and enhance corporate value.
Before the split, a board resolution cancels approximately 24.44 million treasury shares, reducing the total issued shares to 215,268,520. The subsequent 2:1 reverse split further reduces the total issued shares to approximately 107.63 million, with no change in capital base, potentially improving per-share metrics.
The reverse split does not dilute shareholder value; each shareholder's proportional ownership remains unchanged, but the number of shares held halves. Earnings per share and book value per share are expected to double. Fractional shares will be compensated in cash based on the closing price on the listing date.
[AI Summary]TONGYANG's reverse stock split is a capital restructuring without capital reduction, focusing on normalizing per-share value rather than short-term price support. The concurrent treasury share cancellation signals commitment to shareholder value, but without underlying business growth, price appreciation is uncertain. Investors should monitor liquidity changes from reduced float and fractional share compensation.