Initech Decides to Cancel 1 Million Treasury Shares to Enhance Shareholder Value

Initech is taking an active approach to shareholder returns through a large-scale cancellation of treasury shares.

On January 15, Initech announced its decision to cancel 1 million shares of treasury stock currently held by the company. The scheduled cancellation date is January 21. The number of shares to be cancelled this time represents approximately 4.34% of Initech's total outstanding shares, which stands at 23,021,065 shares.

The company explained that this move reflects its long-term commitment to maximizing shareholder value. Initech has decided to use the "profit cancellation" method, acquiring and cancelling treasury shares using distributable profits as the source of funds. Since this reduces only the total number of outstanding shares without decreasing capital, the company expects that the value of shares held by existing shareholders will increase.

Initech anticipates that key financial indicators such as earnings per share (EPS) and return on equity (ROE) will improve, and that the reduction in potential market supply will lead to a more positive evaluation of the company's value.

As of the 2024 fiscal year-end, Initech holds more than 50 billion won in distributable profits. The company plans to continue reviewing various measures to enhance shareholder value, including further treasury share repurchases and cancellations, by utilizing these resources.

An Initech representative stated, "The cancellation of treasury shares is a demonstration of our commitment to sharing the company's achievements with shareholders and strengthening responsible management," adding, "We will continue to do our utmost to enhance corporate credibility and shareholder value through sustainable shareholder return policies."