In the KOSPI market, Aprogen hit the upper price limit on news that, despite a par value reduction without consideration, it has entered a process that would allow it to file for approval of a biosimilar candidate.
Par value reductions without consideration for balance sheet improvement are usually seen as a negative, but expectations grew that this move could structurally rebase the stock, which had been moving sideways below 1,000 won, to the 10,000-won range. Among shareholders, expectations also formed that it might "escape from being a penny stock."
Aprogen engages in steel distribution and operates a pharmaceuticals business through its consolidation subsidiaries Aprogen Biologics and Aprogen Healthcare & Games.
On the 24th, according to the Korea Exchange (KRX), Aprogen closed at 546 won, up 123 won (30%) from the previous trading day. The stock, which was weak early in the session, shot to the upper limit intraday on news that biosimilar candidate AP063 entered a process—through consultations with European and U.S. regulators—that would allow a marketing authorization application without additional phase 3 trials.
The par value reduction without consideration the company released the day before is also seen as having spurred investor sentiment. Aprogen disclosed it will carry out a par value reduction without consideration that cuts the number of outstanding shares by 93.33%, from 329.3 million to 21.95 million. It will merge 15 common shares into one. As a result, capital will decrease from 164.7 billion won to 10.9 billion won.
Par value reductions without consideration are typically read as a sign of a weakened financial structure, often pushing share prices lower. But in Aprogen's case, some shareholders formed expectations that, through the merger associated with the reduction, the share price would top 1,000 won, asking whether it might "escape from being a penny stock."
A par value reduction without consideration does not change market capitalization itself, but the reduced float can create the appearance of a rising share price. On a simple calculation, multiplying the Feb. 24 close (546 won) by 15 puts the price at about 8,190 won as of the scheduled listing date of the new shares, May 8. On the surface, it would instantly shed the "penny stock" label.
Some note that a par value reduction without consideration can help improve the capital structure. Offsetting capital stock against accumulated deficits through the reduction can tidy up the equity section on the financial statements. As of the third quarter of 2025, Aprogen had assets of 811.8 billion won, liabilities of 323.5 billion won, and equity of 488.3 billion won. While not capital impaired, its accumulated deficit (471.3 billion won) is large relative to capital stock (163.3 billion won), posing a meaningful financial burden.
However, some caution that a paid-in capital increase often follows a par value reduction without consideration. A capital markets official said, "A par value reduction without consideration is often a preliminary step to clean up the books ahead of a large investment attraction or a paid-in capital increase," adding, "If a paid-in capital increase is carried out later, existing shareholders' equity could be significantly diluted."
The bigger burden is that weak results continue. As long as losses persist, accumulated deficits can pile up again even after the reduction. Aprogen's preliminary 2025 sales are 117.9 billion won, with an operating loss of 95.6 billion won and a net loss of 137.8 billion won. Those figures are down 21.41%, 10.12%, and 37.24%, respectively, from a year earlier.
An Aprogen official said, "Even though market capitalization has held at a certain level, the share price has moved sideways below 1,000 won, and investor concerns persisted, so we pursued a par value reduction without consideration to address them," adding, "Given that our business structure entails high operating expenses, we determined that improving the financial structure through disposal of accumulated deficits was necessary."