SK Securities saw its shares hit the upper limit following news that it will act as the broker for SK Hynix's 40 trillion won stock buyback.
According to the Korea Exchange, as of 1:44 PM on August 20, SK Securities shares were trading at 2,810 won, up 645 won (29.79%) from the previous trading day. The stock price has surged to the daily price limit, continuing its strong performance.
The sharp rise in SK Securities' stock price is attributed to expectations of increased brokerage fee revenue from SK Hynix's large-scale stock buyback.
Earlier, SK Hynix held a board meeting and decided to buy back 24.07 million common shares in the market and subsequently retire them to enhance shareholder value.
The planned acquisition amount is approximately 40.43 trillion won, which corresponds to about 3.3% of SK Hynix's total issued shares. The stock buyback is set to take place over approximately three months, from today until November 19.
SK Securities has been selected as the brokerage firm for this stock buyback. SK Hynix's daily purchase order limit is set at 2.407 million shares.
Market analysts expect that, given the scale of the 40 trillion won stock buyback, SK Securities could generate significant brokerage fee revenue over the long term. With the decision to retire all repurchased shares, there is also growing interest in SK Hynix's commitment to returning value to shareholders and securing new revenue sources for SK Securities.
However, the specific scale of the fees from this stock buyback brokerage and its impact on SK Securities' performance have not yet been disclosed.
Meanwhile, SK Securities' preferred shares are also experiencing a simultaneous surge.
* This article has been translated by AI.
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