[Hot Stock] Dentium Rises 10% on News of Activist Fund Stake Purchase

Dentium is showing strong performance in early trading. The news that Align Partners, a leading domestic activist fund, has secured shares in Dentium is interpreted as having stimulated investor sentiment.

As of 9:10 AM on the 1st, Dentium is trading at 78,300 KRW, up 10.13% (7,200 KRW) compared to the previous day.

The surge in stock price was driven by the news of the activist fund's stock purchase. The day before, Align Partners announced through a disclosure that it had acquired a 7.17% stake in Dentium through on-market purchases from the 21st to the 28th of last month. Following this, Dentium, which closed at 71,000 KRW on the Korea Exchange, rose about 5% to 74,600 KRW in the NextTrade aftermarket.

Jung Donghee, a researcher at Samsung Securities, explained, "Since the stock price fell to historically low valuation levels earlier this year, the involvement of activist funds in the future could provide an opportunity for a stock price reversal," but added, "Until a strategy for fundamental performance improvement is presented, caution is needed regarding the potential intensification of stock price volatility."

Align has specified the purpose of holding Dentium shares as 'general investment purpose.' While 'simple investment' is a passive form of investment that only exercises basic rights guaranteed by law such as voting rights, preemptive subscription rights, and dividend claims, 'general investment' involves more active shareholder activities without influencing management control.