Seohan Announces 5:1 Reverse Stock Split and Par Value Change from 500 Won to 2,500 Won to Stabilize Share Price and Enhance Corporate Value
Seohan has convened an extraordinary general meeting on July 29, 2026, to approve a 5:1 reverse stock split and change par value from 500 won to 2,500 won. This aims to stabilize the stock price and maintain an appropriate number of shares to enhance corporate value.
The reverse split will reduce outstanding shares from approximately 100.89 million to 20.18 million. The record date is August 13, effective date August 14, and new shares listing expected September 1.
Two outside directors each had a board attendance rate of only 29%, raising governance concerns due to low participation. The internal auditor attended 100% of meetings.
For fiscal 2025, the company reported revenue of 644.5 billion won, operating profit of 62.8 billion won, and net income of 29.2 billion won. It is pursuing new projects in residential, non-residential, and SOC sectors.
[AI Summary]The reverse split is a structural adjustment without capital change or dilution risk. However, the low attendance of outside directors signals weak governance. The move may have a short-term positive impact on the stock price but no fundamental change warrants a neutral outlook.