IT security and authentication platform corporation Raonsecure held a board meeting on the 14th and announced that it has decided to merge five common shares into one. The company explained that this merger aims to maintain an appropriate number of shares to stabilize the stock price and enhance corporate value.
Through this stock merger, Raonsecure's par value per share will increase from 500 won to 2,500 won, while the capital will remain unchanged. The total number of issued shares currently stands at 56,025,871, which will decrease to 11,205,174 after the merger.
The stock merger is scheduled to be finalized at the shareholders' meeting on March 31, and the effective date for the new shares will be April 15. Trading will be suspended from April 11 to May 2, with the new shares expected to be listed on May 7. Any fractional shares resulting from the stock merger will be paid in cash based on the closing price on the most recent trading day before the new shares are listed.
Raonsecure achieved its highest performance since its establishment last year, recording a consolidated provisional revenue of 62.492 billion won, a 20% increase compared to the previous year. Operating profit was 1.967 billion won, marking a successful transition to profitability. The growth of services and platform businesses, such as blockchain-based digital ID and white hat consulting, as well as the expansion of digital ID projects in foreign countries and the subscription-based biometric authentication service business in Japan, contributed to the improvement in performance.
Raonsecure plans to expand its areas into mobile certificates such as qualifications and medical certificates in response to the spread of mobile identification. Additionally, it will enhance its authentication and access control business based on a strategy platform optimized for the 'Zero trust guidelines 2.0' and will also introduce cloud-based services.
The company will actively expand its overseas business. Following the successful execution of digital ID projects in Indonesia and Costa Rica last year, it plans to expand operations this year into Latin America, Southeast Asia, Central Asia, and Europe. The subscription-based biometric authentication service that operates in Japan will also expand into overseas markets like the U.S.
To strengthen future business competitiveness, Raonsecure plans to apply post-quantum cryptography (PQC) to its solutions and pursue B2B business utilizing generative artificial intelligence (AI) based deepfake detection technology. Additionally, it plans to enhance the AI-based tutor and coaching technologies of Raon Metademy.
Raonsecure CEO Lee Soon-hyung noted, 'This stock merger is part of a shareholder-friendly policy aimed at maintaining an appropriate number of circulating shares to provide a more stable investment environment for investors,' and added, 'We will gradually establish a growth foundation to strengthen stock stability and enhance corporate value.'