[Featured Stock] Ecopro BM Surges on News of Rights Issue Ex-Rights Date

[Asia Economy Reporter Hwang Yoon-joo] Ecopro BM is soaring from the start of trading following the announcement of the ex-rights date for its free capital increase.

As of 9:47 AM on the 27th, Ecopro BM is trading at 139,100 KRW, up 11.55% (14,400 KRW) compared to the previous trading day.

Ecopro BM announced on the 24th that the ex-rights date would be implemented. The reference price is 124,700 KRW.

The ex-rights date refers to the date when the rights to new shares expire. Normally, shareholders who hold shares until the record date for new share allocation are granted subscription rights for the new shares. If shares are purchased after the ex-rights date, the buyer does not receive the new shares.

The recent phenomenon of stock prices surging on the ex-rights date is interpreted as an optical illusion. Investors flock to the lower stock price without considering the increase in the number of shares.