Hanmi Semiconductor Completes Cancellation of Treasury Shares Worth 130 Billion KRW

Hanmi Semiconductor announced on May 30 that it has completed the cancellation of treasury shares worth 130 billion KRW.

Hanmi Semiconductor. Photo by Hanmi Semiconductor

This is the largest cancellation in the company's history. As a result, the total number of Hanmi Semiconductor's outstanding shares has decreased from 96,614,259 to 95,312,200. The amended listing is scheduled to take place in mid-June.

Previously, Hanmi Semiconductor had already canceled 72,5043 shares (worth 57.3 billion KRW) out of the 200 billion KRW worth of treasury shares it acquired last year. Including this latest cancellation of 1,302,059 shares, the company will have canceled 94% of its treasury shares. With the reduction in the total number of outstanding shares resulting from this cancellation, the ownership percentage of existing shareholders has increased. Hanmi Semiconductor explained that this leads to an increase in earnings per share (EPS), thereby providing greater potential for stock value appreciation compared to before the cancellation.

When the number of outstanding shares decreases, the total dividends that the company needs to pay out also decline, making it more likely that existing shareholders will receive higher dividends even if the dividend payout ratio remains unchanged. Founded in 1980, Hanmi Semiconductor is the global market leader in TC Bonder equipment for high-bandwidth memory (HBM) production, with approximately 320 global clients.