Samsung Electronics to proceed with 50-1 first stock splitting… KRW 50,000 to be ‘Nation stock’
Kim Min Soo | minsu@ | 2018-02-01 10:44:52
Samsung Electronics has decided to split the face value of the company from KRW 250,000 to KRW 50,000. In the case of individual investors, which had difficulties in investing in Samsung`s stocks at a high price per share, should revitalize, Korea Discount, which has been relatively undervalued, should be resolved.
Samsung Electronics announced on January 31 that it decided to divide its 50-to-1 stock through the board of directors.
As a result of this measure, the value per share of issued shares will be changed from KRW 5,000 to KRW 100, and the total number of ordinary shares will increase to 6,419,247 thousand from the existing 128.38 million 6494 shares.
Roh Hee-chan, president of Samsung Electronics, said in a performance conference call that "dividing stocks is one of the shareholder return policies that return profits to shareholders."
The share price closed at KRW 24.9 million, up 0.20 % from the previous day, as news of Samsung Electronics` par value split came. Stock prices skyrocketed to KRW 277,000 at one time. Trading volume also climbed to a record high of KRW 3.23 trillion due to a surge in trading volume.
On the other hand, Samsung Electronics shares are so high in the market that individual investors are burdened with buying. For this reason, the demand for dividing the face value has been continuously raised by individual investors.
Securities analysts believe that the split will allow more people to hold stocks of Samsung Electronics, making it more likely that they will rise to the public in the future. SEC, which has decided to divide its liquidity division in full swing, is also expected to benefit greatly from investor base expansion and liquidity growth. However, analysts say the stock price trend is likely to be short-lived in the short term due to liquidation.
Analysts has surveyed 667 securities firms that have split since 2000, with average shares rising 3.78 % on the day of disclosure, and the average return has risen by two months since the announcement. However, since then, the average yield has declined again. In the short term, share prices will rise, but in the long run, share prices will fall.
Amore-Pacific, which has split its face value in 2015 according to actual financial information company F & G Guide, fell 20.45% to 299,500 won as of January 31, though its first revised share price was KRW 376,500.
"The average share price has risen since the disclosure of the par value, but it has fallen again," explains Kim Min-kyu, an analyst at KB Securities. "The event of par value split may be a factor for short-term share price rises, but it is not a significant factor in the long term. "He said. Samsung Electronics is scheduled to make a final decision on March 23rd at the regular general shareholders` meeting on the issue of dividing the face value. If the par value split is decided, the transaction will be made from the mid-May to the par value split.
By Kim Min Soo minsu@
[ copyright ⓒ The Digitaltimes ]
Samsung Electronics announced on January 31 that it decided to divide its 50-to-1 stock through the board of directors.
As a result of this measure, the value per share of issued shares will be changed from KRW 5,000 to KRW 100, and the total number of ordinary shares will increase to 6,419,247 thousand from the existing 128.38 million 6494 shares.
Roh Hee-chan, president of Samsung Electronics, said in a performance conference call that "dividing stocks is one of the shareholder return policies that return profits to shareholders."
The share price closed at KRW 24.9 million, up 0.20 % from the previous day, as news of Samsung Electronics` par value split came. Stock prices skyrocketed to KRW 277,000 at one time. Trading volume also climbed to a record high of KRW 3.23 trillion due to a surge in trading volume.
On the other hand, Samsung Electronics shares are so high in the market that individual investors are burdened with buying. For this reason, the demand for dividing the face value has been continuously raised by individual investors.
Securities analysts believe that the split will allow more people to hold stocks of Samsung Electronics, making it more likely that they will rise to the public in the future. SEC, which has decided to divide its liquidity division in full swing, is also expected to benefit greatly from investor base expansion and liquidity growth. However, analysts say the stock price trend is likely to be short-lived in the short term due to liquidation.
Analysts has surveyed 667 securities firms that have split since 2000, with average shares rising 3.78 % on the day of disclosure, and the average return has risen by two months since the announcement. However, since then, the average yield has declined again. In the short term, share prices will rise, but in the long run, share prices will fall.
Amore-Pacific, which has split its face value in 2015 according to actual financial information company F & G Guide, fell 20.45% to 299,500 won as of January 31, though its first revised share price was KRW 376,500.
"The average share price has risen since the disclosure of the par value, but it has fallen again," explains Kim Min-kyu, an analyst at KB Securities. "The event of par value split may be a factor for short-term share price rises, but it is not a significant factor in the long term. "He said. Samsung Electronics is scheduled to make a final decision on March 23rd at the regular general shareholders` meeting on the issue of dividing the face value. If the par value split is decided, the transaction will be made from the mid-May to the par value split.
By Kim Min Soo minsu@