Samchuly Bicycle(024950) was strong in early trading on news it will launch a tender offer of about 12 billion won for its own shares to boost shareholder value.
At 9:31 a.m. on the 18th, Samchuly Bicycle was trading at 4,680 won on the KOSDAQ market, up 390 won (9.09%) from the previous session.
Samchuly Bicycle announced before the market opened that it will conduct a tender offer for 2,408,000 common shares at 5,000 won per share. The planned purchase volume is 19.42% of the total number of issued shares, and the maximum purchase amount is 12.04 billion won.
The tender offer price is 22.25% higher than the previous day's closing price of 4,090 won as of the board resolution date. The tender offer period runs from today through the 10th of next month, and the settlement date is Sept. 15. If the shares tendered fall short of the planned volume, all will be purchased; if they exceed it, purchases will be made on a pro rata basis.
The company said it decided on the tender offer because it judged that, despite recent earnings improvement, this was not fully reflected in the share price and corporate value. Samchuly Bicycle's operating profit rose from 3 billion won in 2024 to 12.4 billion won last year. In the second quarter this year, it posted operating profit of 5.5 billion won and net profit of 7.4 billion won.
Samchuly Bicycle plans to cancel the treasury shares acquired through the tender offer in accordance with relevant procedures. The company said, "We decided on the tender offer to enhance shareholder value and improve capital efficiency through the acquisition and cancellation of treasury shares."