LS Electric is surging early on the 13th, the first trading day after a 5-for-1 stock split.
As of 9:31 a.m., LS Electric was trading on the Korea Exchange at 175,500 won, up 17,900 won (11.36%) from the reference price of 157,500 won. During intraday trading, it changed hands at 194,700 won, setting a new "52-week high."
Earlier, LS Electric carried out a stock split, cutting the par value to 1,000 won from 5,000 won to increase the number of shares in circulation. As a result, the share count rose to 150 million from 30 million. Due to this, trading was suspended from the 8th to the 10th.
When a stock split is carried out, the number of shares increases and the price is adjusted accordingly, creating an illusion that the stock has become cheaper than before. The number of shares in circulation increases, but the fundamental corporate value does not change.