Shares of KOSDAQ-listed ezCaretech were strong early on the 4th after the company released a 100% bonus issue, allocating one new share for each common share.
As of 10:07 a.m. on the day in the Korea Exchange, ezCaretech was trading at 19,200 won, up 2,300 won (13.62%) from the previous session.
ezCaretech disclosed that it decided on a bonus issue after the regular session closed the previous day. One new share will be allocated for each common share. The new shares will be funded with additional paid-in capital. With this bonus issue, the number of ezCaretech shares will rise from 6,834,776 to 13,669,552.
The record date for the bonus issue of ezCaretech is on the 18th.
A bonus issue does not change the overall corporate value, but as existing shareholders' share counts increase, a price illusion that the stock has become cheaper can occur, tending to lift the stock price. It also gives the impression that the company's financial structure is sound enough to raise capital from retained earnings.