Newbotec is set to purchase its own shares worth 1.4 billion won to enhance shareholder value.


Newbotec Decides to Buy Back Shares Worth 1.4 Billion Won View original image

According to Newbotec on June 9, the decision to buy back its own shares was made based on the judgment that the company's current stock price is significantly undervalued compared to its intrinsic value. Through this share buyback, the company aims to reinforce the downside rigidity of its stock price, increase shareholder value, and further strengthen communication with the capital market.


In particular, Newbotec has been gradually expanding its strong shareholder-friendly policies, led directly by its management team since the beginning of this year. Recently, both CEO Hwang Moonki and CEO Hwang Heeseon, the two co-CEOs, personally committed their own funds to purchase shares on the open market, demonstrating a firm commitment to responsible management. Additionally, the company has taken concrete steps to enhance shareholder value, such as retiring all of its approximately 170,000 treasury shares.


The largest shareholder, the corporation ECO, and the owner family have also contributed to boosting corporate value by additionally purchasing company shares. The company explained that as the management, key shareholders, and the company itself directly commit funds and undertake a large-scale share buyback, they are demonstrating a strong commitment to enhancing corporate value and shareholder returns in the market.


This decision also aligns with Newbotec's recent announcement of transitioning to a co-CEO system and the recruitment of business innovation and M&A specialist Yang Kiin as President. As management restructuring and the strengthening of the growth foundation through the appointment of President Yang proceed in parallel with the expansion of shareholder return policies via share repurchases, Newbotec's drive for scaling up is gaining full momentum.



CEO Hwang emphasized, "This decision to repurchase shares worth 1.4 billion won and the simultaneous on-market purchases by both CEOs are based on our firm confidence in the company's future growth potential and intrinsic value," adding, "We will not only further strengthen responsible management at the forefront of operations, but will also continue to implement a variety of shareholder return policies that the market and shareholders can experience, in order to solidify trust in the capital market."


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