Celltrion said on the 21st it will push a comprehensive plan to boost shareholder value, including a stock dividend, share buybacks, and an increase in the largest shareholder's equity.
As market volatility has recently increased, the company moved to stabilize the share price and secure shareholder trust with a large-scale shareholder return policy.
The company said it will carry out a free stock issue of about 10.92 million shares, allocating 0.05 new share per common share. The new shares are scheduled to list on June 30. Following last year's free stock issue of about 8.49 million shares, this marks a second straight year of such action. A free stock issue distributes shares at no cost to existing shareholders by using retained earnings and other reserves held by the company.
The company said it decided on the free stock issue to invigorate transactions and improve investment accessibility.
Celltrion will also buy an additional 100 billion won of its own shares, about 550,000 shares. It plans to cancel all repurchased shares within the year. After canceling about 1.8 trillion won (about 9.11 million shares) of treasury shares last month and now announcing additional buyback and cancellation plans, the total amount of treasury share cancellations this year is expected to reach about 2 trillion won, about 10 million shares.
The company canceled about 3.43 million treasury shares in 2024 and about 4.97 million in 2025. Including this measure, the cumulative cancellation over the past three years is about 18.56 million shares, or 8.4% of total shares outstanding, it said.
Celltrion Holdings, the largest shareholder, will also acquire an additional 100 billion won of Celltrion shares. The aim is to demonstrate a commitment to responsible management by expanding the largest shareholder's equity. The Celltrion employee stock ownership association will also proceed with the 12th round of employee stock subscription.
Celltrion cited improved earnings and business competitiveness as the backdrop for expanding its shareholder return policies. On a consolidation basis in the first quarter of this year, the company posted sales of 1.145 trillion won and operating profit of 321.9 billion won, marking its best quarterly results.
The company projected it will maintain steady growth in the second quarter, underpinned by growth in the biosimilar business, an expanded new drug pipeline, and rising global market share. It also emphasized that, with a high export ratio, exchange-rate effects are limited, and its treatment-centered business structure is less sensitive to the economic cycle.
A Celltrion official said, "Despite macroeconomic uncertainty, we expect to continue steady growth in the second quarter based on solid fundamentals," and added, "Through successive shareholder-friendly policies, we will raise both corporate value and shareholder value."