Iworld is experiencing a surge in its stock price as it prepares for a 5-for-1 stock consolidation.
According to the Korea Exchange, as of 2:37 PM on August 26, Iworld's shares rose by 140 won (29.98%) to 607 won compared to the previous trading day.
The news that Iworld, which was designated as a management item due to its low stock price, is taking steps to mitigate the risk of delisting through stock consolidation has reportedly boosted investor sentiment.
Iworld plans to hold an extraordinary general meeting on August 27 to address the stock consolidation proposal, which will merge five common shares into one. Once the consolidation is completed, the par value per share will increase from 1,000 won to 5,000 won, and the total number of issued shares will decrease from 141,806,193 to 28,361,238.
The company aims to raise its share price through the consolidation to address the delisting risk associated with its low stock price. Iworld has stated that the purpose of the consolidation is to stabilize the stock price by maintaining an appropriate number of circulating shares and enhancing corporate value.
Previously, Iworld was designated as a management item on August 20 after its stock price fell below 1,000 won for 30 consecutive trading days. According to the regulations of the KOSDAQ market, failure to recover the stock price within a specified period after being designated as a management item could lead to delisting.
If the proposal is approved at the general meeting, trading will be suspended from September 10 to October 1, with trading of the consolidated shares resuming on October 2.
* This article has been translated by AI.
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