[Market Focus] Hyundai Bio Jumps 19% on News of Stock Dividend

Hyundai Bio is showing strong performance in early trading.

As of 9:10 a.m. on July 11, Hyundai Bio is trading at 12,950 won, up 19.69% (2,130 won) from the previous day.

The surge in investor sentiment is attributed to news of a stock dividend. Hyundai Bio announced the previous day that it had decided to issue a stock dividend, allocating one new share for each existing share.

The total number of new shares to be issued is 48,029,352. The record date is July 25, and the new shares are scheduled to be listed on August 14.

This move is interpreted as an effort to boost the share price, which had fallen to about half of its 52-week high of 21,390 won, and to enhance shareholder returns. The company plans to use approximately 24 billion won in paid-in capital in excess of par value as funding for the new share issuance.