[Market Focus] Telcon RF Pharmaceutical Hits Upper Limit on Ex-Rights Effect from Bonus Issue

Telcon RF Pharmaceutical is hitting the upper price limit on August 22 due to the ex-rights effect from its bonus issue.

As of 10:21 a.m. on this day, Telcon RF Pharmaceutical shares are trading at KRW 2,490 on the KOSDAQ market, up by the daily maximum increase of 29.89%. The stock hit the upper limit as soon as the market opened.

Telcon RF Pharmaceutical, a manufacturer of pharmaceuticals and radio frequency (RF) medical devices, previously decided in May to conduct a bonus issue, allocating two new shares for each common share held, in order to enhance shareholder value. During the bonus issue process, when rights to the new shares expire, the share price is artificially lowered in proportion to the bonus issue ratio. This creates an optical illusion that the stock is cheaper, often attracting buying momentum.

The record date for the new share allocation is August 25, and the listing date for the new shares is scheduled for September 15.