[Market Focus] Ontide Hits Upper Limit Following Announcement of Management Rights Sale

As of 9:30 a.m. on July 2, Ontide, an apparel manufacturing company listed on the Korea Exchange, was trading at 663 won per share, up 30% from the previous day's closing price. This surge appears to be due to the company's announcement of a change in its largest shareholder the previous day.

Ontide manufactures knitwear at overseas factories and supplies it to global apparel brands such as H&M through an Original Equipment Manufacturing (OEM) model.

On the previous day, Ontide disclosed that its largest shareholder, Chris F&C, transferred 25% of its stake (approximately 16.88 million shares) out of its total 33.26% holding, leaving only 8.26%. The shares were sold to Cosmo Investment at a price of 1,777 won per share, with the total transaction amounting to approximately 30 billion won.

The buyer, Cosmo Investment, is known as a specialized OEM company with over 20 years of experience in global production and operations.

According to Ontide's consolidated financial statements for the first quarter of this year, the company posted sales of approximately 61.7 billion won and operating profit of about 3.6 billion won, marking a turnaround to profitability compared to the same period last year.