[Market Focus] HMM Surges Over 7% on 2 Trillion Won Share Buyback Announcement

HMM shares are showing strength following the announcement of a 2.1432 trillion won open market buyback of its own shares.

As of 9:17 a.m. on August 18, HMM was trading at 23,800 won on the Korea Exchange, up 1,700 won (7.69%) from the previous session. The stock has been on a three-day winning streak.

Previously, on August 14, HMM held an extraordinary board meeting and approved an agenda to buy back and cancel its own shares worth 2.1432 trillion won. The buyback price per share is set at 26,200 won, with a total of 81,801,526 shares to be repurchased, representing 7.98% of the total shares outstanding. The tender offer period runs from today through September 12.

Choi Minki, a researcher at Shinhan Investment Corp., commented, "Given the potential for share price weakness after the subscription period ends, and the limited volume available for disposal through the tender offer, there is little incentive for new investors without existing holdings to actively buy. If the market price approaches the tender offer price, existing shareholders may seek to realize profits by selling their shares." He added, "However, considering that HMM's share price has experienced significant volatility this year due to unpredictable risks, the tender offer event could actually increase price visibility, making a short-term trading strategy feasible."