In early trading on the 30th, Humax and Humax Holdings were trading at the upper limit (the top of the daily limit range) on the impact of a reverse stock split.
As of 9:55 a.m., Humax was trading at 9,370 won, up 2,160 won (29.96%) from the previous session. At the same time, Humax Holdings was also trading at 9,770 won, up 2,250 won (29.92%) from the previous session.
Earlier, Humax carried out a 1-for-10 reverse stock split, reducing the total number of outstanding shares from 43.12 million to 4.31 million. Accordingly, the par value changed from 500 won to 5,000 won, and the post-split reference price is 7,210 won.
The company cited stabilizing the share price by maintaining an appropriate number of circulating shares and enhancing corporate value as the background for the split. Humax resumed trading on the day after trading was suspended from the 9th to the 29th.
Humax Holdings also implemented a 1-for-5 reverse stock split, reducing the total number of outstanding shares from 11.43 million to 2.28 million. The par value was adjusted from 500 won to 5,000 won, and the post-split reference price is 7,520 won. Trading in the stock was also suspended from Apr. 9 to the 29th and has resumed from the day.
A reverse stock split reduces the number of shares in circulation and raises the price per share, playing a positive role in pushing the stock higher. However, while it can temporarily boost the share price, it is unrelated to the company's value or profitability improvements and does not guarantee long-term gains.