The stock price of TELCON RF PHARMACEUTICAL, a KOSDAQ-listed company, is strong in early trading on the 22nd due to the effects of the ex-rights date on the free capital increase.
As of 9:24 a.m. on this day, TELCON RF PHARMACEUTICAL is trading at 2,490 won, up 573 won (29.89%) from the previous trading day.
The rise in the stock price of TELCON RF PHARMACEUTICAL, a manufacturer of pharmaceuticals and radio frequency (RF) medical devices, appears to be due to the optical illusion effect of the ex-rights date on the free capital increase.
When the right to receive new shares disappears during the process of a free capital increase for listed companies, the Korea Exchange artificially adjusts the price of the stocks in accordance with the free capital increase ratio. This process often creates an optical illusion where the stock price appears cheaper, leading to an influx of buying interest.
Expectations that the transaction volume will increase as the number of issued stocks rises also affect the increase in stock price. However, the effect of the ex-rights date on the free capital increase does not last long, requiring investor caution.
Earlier, TELCON RF PHARMACEUTICAL conducted a free capital increase allocating two shares for every one common share in May. Reflecting this, the stock price, which was 5,750 won the previous day, was adjusted to 1,917 won on this day. The record date for the new share allocation is the 25th, and the listing date is scheduled for the 15th of next month.