KRAFTON announced a share buyback, and the stock price is on the rise.
KRAFTON's shares were traded at 345,000 won in the after-market at 5:13 p.m. on the 26th, up 2.68% (9,000 won) from the previous closing price. It increased by 1.92% (6,500 won) compared to the regular market closing price on the same day.
KRAFTON announced that it plans to buy back 970,000 of its own shares worth about 325.9 billion won in the market to enhance shareholder value after the regular trading hours. This is approximately 2% of its market capitalization. The expected period for acquiring the shares is from the 27th to June 26th. KRAFTON plans to retire more than 60% of the repurchased shares.
This share buyback and retirement by KRAFTON is part of a three-year shareholder return policy announced in 2023. KRAFTON also plans to introduce an additional three-year shareholder return policy.
Baek Dong-geun, Chief Financial Officer (CFO) of KRAFTON, noted at the regular shareholders' meeting held on that day, "We plan to review the shareholder return policy utilized in the three years since our listing and establish a new long-term shareholder return policy this year," adding, "We intend to actively consider dividends in line with recent market conditions." He also stated, "I believe we can announce the new three-year shareholder return policy at next year’s shareholders' meeting."
KRAFTON entered the KOSPI market in August 2021 with an initial public offering price of 498,000 won. In November of the same year, the stock price peaked at 580,000 won, but it has since been on a downward trend. Although it showed a rebound from a low of 145,900 won on September 14 last year, it is still below the IPO price.
Securities firms believe that KRAFTON’s stock price could rise further. According to financial information provider FnGuide, seven securities firms that issued investment opinions on KRAFTON this month set an average target price of 468,000 won.