Shares of AIRRANE, a KOSDAQ-listed company, rose in early trading on the 24th after a stock dividend decision.
As of 9:46 a.m. that day, AIRRANE was trading at 15,080 won, up 1,860 won (14.07%) from the previous session.
AIRRANE, which provides eco-friendly solutions using gas separation membrane technology, the previous day carried out a 100% stock dividend, allocating one common share per one existing common share.
A stock dividend does not change the total corporate value, but as existing shareholders' share counts increase, a price illusion that the stock has become cheaper can occur, tending to lift the share price. It also gives the impression that the company's financial structure is sound enough to fund capital with retained earnings.
AIRRANE's record date for new share allocation is on the 10th of next month, and the scheduled listing date is the 31st of the same month. With this stock dividend, the total number of issued common shares will increase to 13,603,078.