[Featured Stock] Kakao Jumps from the First Day of Stock Split... Bullish Trend

[Asia Economy Reporter Lee Seon-ae] Kakao is showing strong performance from the start of trading after the stock split.

At 9:21 a.m. on the 15th, Kakao was trading at 122,000 KRW, up 8.93% compared to the previous trading day. It opened at 120,500 KRW and surged to 132,500 KRW.

Amid high expectations for Kakao's growth potential, the stock split is interpreted as a positive factor that has rather expanded liquidity.

On this day, Kakao began its first trading session after a 5-for-1 stock split. The post-split price is 116,000 KRW, which is one-fifth of the closing price of 558,000 KRW on the 9th, the last trading day before the trading halt for the stock split. The number of shares increased fivefold, from 88,704,620 shares to 443,523,100 shares.

A stock split is when a company increases the total number of shares by lowering the par value of existing shares without increasing capital. Since the market capitalization remains the same, the number of shares increases fivefold inversely. Typically, after a stock split announcement, companies' stock prices rise but tend to stall after the stock split re-listing.

This content was produced with the assistance of AI translation services.