15 Companies Listed with Name Changes This Year
Hanguk & Company Rises 16.89%
Won Biogen Falls 39.26%
[Asia Economy Reporter Park Jihwan] It has been revealed that the stock prices of listed companies that changed their names this year have fallen by an average of more than 8%. Although companies have changed their signboards to improve their image, the actual effect of renaming has fallen short of expectations.
According to financial information provider FnGuide on the 12th, a total of 15 listed companies on the KOSPI and KOSDAQ changed their names up to the previous day this year. Eleven were KOSDAQ-listed companies, and the remaining four were KOSPI-listed companies.
Comparing the closing prices on the trading day before the name change and on the 11th for these companies, more companies experienced a decline than an increase. Four companies succeeded in rebounding, while six companies saw a decline. Five companies had no price fluctuations due to trading suspension around their listing dates.
The stock prices of listed companies that changed their names fell by an average of 8.09% compared to the trading day immediately before the renaming. By market, KOSPI-listed companies fell by 1.17%, and KOSDAQ-listed companies fell by 12.70%. Compared to market returns, the decline in stock prices of renamed companies is more pronounced. This year, the KOSPI rose by 4.88%, while the KOSDAQ retreated by 6.24%. They underperformed the market returns by 6.05 and 6.46 percentage points, respectively.
The company with the largest increase in stock price was Hankook & Company, which saw its stock price jump 16.89% after renaming on January 18. This appears to have been influenced by merger issues and shareholding competition that began at the beginning of the year. E&C Corporation (8.66%), DL (2.67%), and City Labs (2.56%) also saw increases.
On the other hand, One Biogen's stock price fell 39.26% after renaming, with Cloud Air (-25.13%), HumanN (-20.58%), and Prestige BioPharma (-19.72%) experiencing significant declines. Prestige BioPharma changed its name less than a month after listing on the KOSPI as 'PBP Pharma' on the 5th of last month but could not avoid a stock price decline. Additionally, Woori Financial Capital (-4.50%) and Eight One (-2.46%) also experienced stock price declines after changing their names.
Among the companies that changed their names, five are currently designated as management stocks, which calls for investor caution. Management stocks refer to stocks that may be subject to delisting due to reasons such as negative audit opinions. A financial investment industry official advised, "While some companies change their names due to significant changes in their existing business structure, many attempts are also made to shed a bad past image. It is necessary for investors to develop a habit of understanding both the current financial structure and past history of the investment companies."
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