BlueMTec, a KOSDAQ-listed company, is seeing strong stock prices in early trading on the 16th following the announcement of a 200% bonus issue.
As of 9:15 a.m. on that day, BlueMTec was trading at 13,150 won, up 1,900 won (16.89%) from the previous trading day.
BlueMTec, which operates a pharmaceutical e-commerce platform, announced that it decided to allocate two new shares for each common share just before the market closed the previous day. The par value per share is 100 won. The record date for new share allocation is set for the 9th of next month, and the shares are expected to be listed on the 30th of the same month.
BlueMTec plans to use 2.2 billion won from its excess stock issuance to carry out the bonus issue. After the announcement of the bonus issue the previous day, BlueMTec finished trading up 3.50% compared to the previous trading day.
A bonus issue does not change the total corporate value, but it can create an illusion that the stock price has become cheaper as the number of shares held by existing shareholders increases, leading to a tendency for the stock price to rise. It also gives the impression that the corporation has a sound financial structure, as it can raise capital with surplus earnings.