The stock price of Hecto Financial, classified as a theme stock for the new government policy, is weak in the pre-market on the 17th (Pre-Market · 8 a.m. to 8:50 a.m.). This appears to be due to the decision to sell stock instead of burning treasury shares.
On the 17th at 8:14 a.m., shares of Hecto Financial traded at 27,450 won in the pre-market. This is a decrease of 4.02% (1,150 won) from the previous day's closing price of 28,600 won.
Hecto Financial announced its plan to dispose of treasury shares after the regular market closed the previous day. The plan was to sell 700,000 treasury shares through off-hours large-scale transactions from that day until September 16. This quantity corresponds to 7.4% of the total number of issued shares (9,453,000 shares).
Hecto Financial stated that the purpose of disposing of treasury shares is to secure funds for new business investments and expand stock liquidity. Additionally, it noted, "The number of circulating shares will increase by 9.4%, leading to a dilution effect on share value, but the impact will be minimal due to disposal through off-hours large-scale transactions."
However, investors concerned about share value dilution, as Hecto Financial decided to sell instead of burn treasury shares, are interpreted to have taken profit for now. Hecto Financial holds an additional 417,687 shares (4.4% stake) apart from the quantity being disposed of this time.
Hecto Financial is an electronic financial service company providing electronic payment gateways (PG) and convenient cash payment options. With the inauguration of President Lee Jae-myung, it has been linked to local currency and 'stablecoin' policy theme stocks, resulting in a sharp rise in its stock price.
The stock price of Hecto Financial skyrocketed from 13,360 won at the end of last month to 28,600 won the previous day, an increase of 114.1% (15,240 won). The Korea Exchange designated Hecto Financial as a short-term overheating stock and decided to apply a single-price trading method in 30-minute intervals until the 19th.