Share buyback cancellation 3,000billion announcement cheers individual investors
6Month 22day, domestic listed companies disclosed plans to cancel a total of 3,000billion worth of treasury shares, prompting a response from individual investors on related message boards and in intraday trading. The companies have disclosed the cancellation amount, schedule, and method through regulatory filings.
6Month 22day, some listed companies disclosed plans to cancel treasury shares worth 3,000billion won, and individual investors’ reactions were observed immediately.
The disclosed materials included the cancellation amount, cancellation method, and scheduled cancellation period. The companies said they would either cancel treasury shares they held or purchase additional shares in the market and then retire them.
Numerous posts appeared on online investor message boards and communities saying that opinions and trading related to the affected stocks had increased following the cancellation disclosures. It was reported that changes in trading volume and bid and ask quotes were detected in some stocks.
According to disclosures by several companies, the cancellation schedule differed by company, and the specific execution timing and procedures were stated in each company's disclosure. Investors should check the cancellation ratio and period stated in the disclosure, as well as changes in their shareholdings before and after the cancellation.
The sources of funds presented by the companies when disclosing their cancellation plans also differed. Some companies said they would cancel shares using cash on hand, while others said they would cancel shares additionally purchased in the market.
Whether a separate approval procedure by the relevant authorities or additional disclosure requirements apply can be confirmed in each company's disclosure and press releases issued after the disclosure. This matter unfolded around disclosures announced on 6 month 22 day.
Sources: 매일경제 증권
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