[Market Focus] Kolon Mobility Group Soars Over 20% Ahead of Voluntary Delisting

Kolon Mobility Group, which is pushing for voluntary delisting, and its preferred shares are soaring in price.

As of 2:27 p.m. on September 23, Kolon Mobility Group's stock price was trading at 15,570 won, up 2,960 won (23.47%) from the previous trading day. The preferred shares, Kolon Mobility Group Preferred, rose by 29.95% to 39,700 won. Both stocks hit their upper price limits on this day.

The stock price of Kolon Mobility Group has been climbing vertically for several days without any brakes. For common shares, the rally began with a sharp increase of about 9% on September 10, followed by five consecutive trading days of hitting the upper price limit. Although the stock plunged by 26% on September 19, it rebounded with a 30% vertical surge on September 22.

The sharp rise in stock price comes after Kolon decided to push for the delisting of Kolon Mobility Group through a merger to make it a wholly owned subsidiary early next year. On September 10, Kolon announced that it had acquired 90.37% of the common shares and 73.51% of the preferred shares of Kolon Mobility Group through a public tender offer. The remaining shares are expected to be secured through a comprehensive stock swap.

Kolon's plan is to convert the listed company into an unlisted company in order to speed up decision-making and improve management efficiency. After becoming an unlisted company, Kolon can be free from issues such as shareholder response and disclosure of management information, enabling it to quickly restructure its business operations.