Largest shareholders of listed companies sell stocks to secure cash when stock prices rise

Pyung Hwa Industrial and Union Materials share prices rise… Largest shareholder disposes of part of holdings

A case in which the largest shareholder of a company whose stock price has soared to secure cash by selling some of its holdings as the stock market moves in a box range and individual stocks fluctuate according to issues or themes. are coming out one after another. It is a strategy to generate profits by disposing of some of the stocks at a level that does not affect management rights, and is also attracting attention as ‘the largest shareholder’s financial technology’.

Pyung Hwa Industrial, an auto parts manufacturer, announced on the 16th that Pyung Hwa Holdings, the largest shareholder, had sold some of its shares in the market. Pyung Hwa Holdings is the largest shareholder with a 47.66 percent stake in Pyung Hwa Industrial, but this time it sold 550,000 shares, lowering its holdings to 46.65 percent.

Pyung Hwa Holdings is estimated to have secured about 10 billion won in cash as the largest shareholder sold some of his stake amid rising stock prices of Pyung Hwa Industrial. Analysts say that Pyung Hwa Holdings’ sale of stocks is related to the recent surge in Pyung Hwa Industrial stock prices. On the 16th, the stock price of Pyung Hwa Industrial moved from 1640 to 1880 won, which was the highest level this year. Until the beginning of this year, Pyung Hwa Industrial’s stock price was around 1,100 won, but recently, as the domestic finished car industry has shown favorable conditions, Pyung Hwa Industrial’s stock price has risen significantly. In particular, Pyung Hwa Industrial’s stock price has been strong since the middle of this month, and on the 11th, it rose to the price limit and exceeded 1,780 won.

illustration = affectionate

Union Materials, whose share price has soared recently, is a similar case. Union, the largest shareholder of Union Materials, disposed of its stake three times this month alone. Union sold 410,000, 100,000, and 1.2 million shares of Union Materials on the 4th, 8th, and 16th of this month, respectively. As a result, Union’s share in Union Materials decreased from 44.07% to 40.0%메이저사이트.

Union Material’s share price has been hovering between KRW2,000 and KRW3,000 per year for the past year, but has risen sharply since last month. The share price rose to 4,000 won in April, and exceeded 6,000 won this month. In particular, on the 4th of this month, when Union sold its shares for the first time this month, the intraday share price approached 8,000 won. Recently, ferrite has been attracting attention in the stock market as an alternative to rare earth elements in secondary batteries, and investment funds have flowed in as Union Material, which produces ferrite magnets, has been tied to related theme stocks.

In the case of Hannong Chemical, which is considered an all-solid-state battery-related stock, when the stock price rose, Chairman Kim Eung-sang sold part of his stake. Chairman Kim sold 100,000 stocks on the 26th of last month when the stock price rose from around 20,000 won to around 30,000 won last month. The share price of Hannong Chemicals has moved around 10,000 won for the past year, but exceeded 20,000 won last month.

What is common in cases where the largest shareholder sells part of its stake right after the stock price soars is that even if the stake is somewhat reduced by selling the stock, it is not enough to affect management rights. Hannong Chemical, where Chairman Kim is the largest shareholder, also holds a 46% stake in the company, which includes Chairman Kim and other related parties.

An official from the securities industry said, “When the stock price rises exceptionally, the largest shareholder can secure the necessary cash by disposing of some of his stake, and also has the advantage of expanding his stake at a low price when the stock price declines later.” If it is not enough to shock the stock price, the largest shareholder’s trading on the exchange can be seen as a rather healthy transaction.”

However, some voices say that if the largest shareholder sells an excessive amount of stake when the stock price rises, it may give the wrong signal to shareholders or investors and raise questions about the largest shareholder’s moral responsibility. An official from a KOSDAQ company said, “There is no reason for minority shareholders to be happy with the sale of their shares by the largest shareholder.”

Leave a Reply

Your email address will not be published. Required fields are marked *