Kolon TissueGene Resumes Trading After 3 Years 5 Months... ShillaJen Slips, 'Investment Warning' Issued

Exchange's 'Listing Maintenance Resolution' on 24th... 60,000 Small Shareholders Relieved "Beware of Rollercoaster Stock Price"

[Asia Economy Reporter Lee Seon-ae] Kolon TissueGene, which resumed trading after 3 years and 5 months, also hit the upper price limit.

On the 25th, Kolon TissueGene's opening price was set at 16,050 won, double the previous trading day's closing price (8,010 won). Immediately after the market opened, it surged to the upper price limit, setting a new 52-week high. As of 9:10 AM, it recorded 20,850 won, reaching the maximum price fluctuation limit of 29.91%.

Kolon TissueGene resumed trading after about 3 years and 5 months since its suspension in May 2019, following the Korea Exchange's decision to maintain its listing on the 24th. The exchange set the previous closing price of Kolon TissueGene as the evaluation price and determined the reference price within a range of 50% to 200% of this price. From 8:30 AM to 9:00 AM on the same day, bids were accepted, and the initial price determined by a single-price auction method was set as the reference price. Based on this reference price, trading was conducted within a 30% range up and down, similar to regular stocks, resulting in a reference price of 16,050 won for Kolon TissueGene.

With the resumption of Kolon TissueGene's trading, approximately 60,000 small shareholders were able to breathe a sigh of relief. As of the end of last year, there were 61,638 small shareholders holding 35.02% of the shares.

Although the stock price surged sharply on the day, rushing in prematurely could lead to losses. Shares held by shareholders whose funds were tied up for a long period may flood the market at once. Kolon TissueGene's voluntary lock-up shares include 4,638,913 shares under protective custody by the largest shareholder, Kolon, and 2,382,764 shares under protective custody by Lee Woong-yeol, Honorary Chairman of Kolon and a major shareholder. The lock-up period lasts from the trading resumption date, the 25th, until October 24 of next year.

In the securities industry, it was advised to take Shinilgen, which resumed trading after 2 years and 5 months on the 13th, as a cautionary example. Shinilgen attracted tremendous attention, with trading volume approaching 30 million shares on the first day. Considering that Samsung Electronics, the largest company by market capitalization on the KOSPI, has an average daily trading volume of 13 million shares over 5 days, this was an explosive influx of demand. However, after recording the upper price limit for two consecutive trading days, Shinilgen declined from the fourth trading day onward.

Meanwhile, Kolon TissueGene gained attention in July 2017 when its ‘Invossa,’ the world’s first ‘gene therapy for osteoarthritis,’ received approval from the Ministry of Food and Drug Safety. However, trading was suspended in May 2019 after controversy arose over the identity of the components of Invossa, which was undergoing Phase 3 clinical trials in the United States.

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