Digital Twin solution corporations listed on KOSDAQ, EGIS(261520), jumped more than 26% early on the 1st on news it is pushing a large-scale share buyback.
As of 9:16 a.m., EGIS was trading at 5,340 won on the KOSDAQ market, up 1,120 won (26.54%) from the previous session.
EGIS's surge appears to reflect investor optimism after it disclosed a large trust contract to buy back its own shares. EGIS said it signed a 3 billion won trust contract with Hana Securities on the day to purchase treasury shares to stabilize its stock price and enhance shareholder value.
The contract runs from Aug. 31 this year to Mar. 2 next year. The planned number of shares to acquire is 707,547 common shares, calculated based on the planned price of 4,240 won per share. That amounts to about 6.9% of the company's total shares outstanding.
EGIS is reviewing a plan to cancel all treasury shares purchased through this trust contract. In line with the revised Commercial Act, it plans to continue an active shareholder return policy by carrying out the share cancellation.
EGIS is expanding its business into physical artificial intelligence (AI), aerospace, and Autonomous Driving based on its own Digital Twin technology. It has completed integration with Nvidia's Omniverse, a virtual simulation platform, and is also working to register its solution officially. In the second half of the year, it plans to launch a commercial solution for refining satellite data.