Computer manufacturing corporations JOOYONTECH hit the upper price limit on the first day of trading resumption on the 18th. Buying appears to have gathered on expectations that the stock price would stabilize as the number of shares in circulation decreases.
As of 9:37 a.m. that day on the Korea Exchange, JOOYONTECH was trading at 2,760 won, up 610 won (28.37%) from the previous trading day. It rose to 2,795 won early in the session.
In Feb., JOOYONTECH decided on a reverse stock split to maintain an appropriate number of circulating shares, consolidating the par value from 200 won to 1,000 won. With this split, the total number of common shares issued will be adjusted from 64,481,582 before the split to 12,896,316 after the split.
Accordingly, it was designated a trading suspension period from on the 27th of last month to the 15th of this month.
A reverse stock split is when a company combines multiple shares into one, reducing the number of shares outstanding and raising the par value. The total asset value of the shares held by an investor does not change, and it does not affect corporate value.
Meanwhile, JOOYONTECH posted standalone sales of 17.139 billion won and operating profit of 415 million won in the first quarter of this year. Compared with the same period a year earlier, sales rose 7.6%, and operating profit swung to a surplus.