The share price of the KOSPI-listed company Shin Hwa Dynamics(001770) hit the upper limit (the top of the daily price band) right after the market opened on the 14th. Buying appears to have surged on news that the company will purchase 2 billion won worth of its own shares.
As of 9:13 a.m. that day, Shin Hwa Dynamics shares were trading on the main board up 29.95% (2,240 won) from the prior session at 9,720 won.
On the 13th, Shin Hwa Dynamics disclosed that it had decided to acquire 2 billion won worth of treasury shares. The expected acquisition period is from the 18th to Oct. 23, with purchases to be made on the open market through the main board.
The company said the purpose of the purchase is "enhancing shareholder value through treasury share acquisition." Shin Hwa Dynamics appears to be trying to support its share price through buybacks. Shin Hwa Dynamics has been designated as an administrative issue for failing to meet the market capitalization requirement. Shin Hwa Dynamics' current market cap is around 11.8 billion won, below the 30 billion won listing maintenance requirement of the Korea Exchange (KRX).