Gaon Cable, a specialized wire manufacturer, is experiencing a surge in stock prices following news of securing a large contract in the U.S. market.
As of 9:49 a.m. on June 18, Gaon Cable's shares rose by 52,500 won (15.40%) to 393,500 won, according to the Korea Exchange. At one point, the stock climbed over 22%, reaching 416,000 won. This marks the fourth consecutive day of gains for Gaon Cable, which hit its upper price limit the previous day.
The increase in stock price is attributed to the announcement of expanded contracts related to artificial intelligence (AI) data centers and power networks in the U.S.
According to financial industry sources, Gaon Cable's U.S. subsidiary, LSCUS, recently signed a bus duct supply contract valued at approximately 4.7 trillion won. Bus ducts are critical infrastructure for AI data centers, providing stable power supply. Additionally, Gaon Cable's U.S. subsidiary has secured long-term supply contracts for bus ducts exceeding 5 trillion won with major global tech companies.
Meanwhile, Gaon Cable also announced a stock split today, stating it will issue 13,234,492 new common shares. The stock split will allocate 0.8 new shares for each existing common share held by shareholders. The record date for the new share allocation is set for July 1, with the new shares expected to be listed on July 23.
* This article has been translated by AI.
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