Alteogen to Remain on KOSDAQ... Delays KOSPI Move and Announces Bonus Issue

Transfer to KOSPI Postponed for the Time Being
0.3 New Shares Allotted per Common and Preferred Share
Listing Transfer to Be Reconsidered Depending on Market Conditions

Alteogen has decided to temporarily suspend its plan to transfer its listing to the Korea Exchange (KOSPI) and will remain listed on the KOSDAQ market. The company will also carry out a 30% bonus issue to enhance shareholder value.

On July 16, Alteogen announced that, after reviewing the capital market environment, the government’s policy to invigorate the KOSDAQ market, and demand-supply effects, it has decided to postpone the timing of its planned transfer to the KOSPI.

Aerial view of Alteogen headquarters and research institute. Alteogen

In December last year, Alteogen received approval during an extraordinary shareholders’ meeting for a conditional delisting from KOSDAQ and a transfer to the KOSPI. However, given the recent market conditions, the company determined that remaining on KOSDAQ would be more advantageous for enhancing its corporate value and shareholders’ interests.

The company explained that, after transferring to the KOSPI, its expected weighting within the KOSPI 200 index would be around 0.3%. This figure is approximately 69% lower than the estimate made by the board at the time the transfer was resolved last year.

External analysis indicates that passive capital outflows, such as those from exchange-traded funds (ETFs), as a result of the transfer to the KOSPI could reach about 360 billion won. The outflow of capital caused by losing its position as a leading KOSDAQ company may outweigh any benefits gained from being included in the KOSPI 200 index.

The decision was also influenced by government and Korea Exchange initiatives to revamp the KOSDAQ market, such as implementing a promotion and relegation system, introducing representative indices and ETFs, and supporting the National Growth Fund. Alteogen considered these market activation policies and the potential for increasing the KOSDAQ weighting in pension fund benchmarks before deciding to remain on KOSDAQ.

However, the plan to eventually transfer to the KOSPI has not been completely scrapped. Alteogen stated that it will reassess market conditions, demand-supply effects, and shareholder interests in the future and will determine whether or when to resume its listing transfer pursuit.

Simultaneously, Alteogen will conduct a bonus issue, allotting 0.3 new shares per common and preferred share. The company plans to increase the number of shares in circulation to boost trading liquidity and improve investor access to its stock.

Chun Taeyeon, CEO of Alteogen, said, “After comprehensively reviewing the recent capital market environment and the government’s KOSDAQ activation policy, we determined that continuing our growth as a leading innovation company on KOSDAQ is currently more conducive to enhancing shareholder value. We will continue our efforts to maximize shareholder interests through ongoing improvements in corporate value.”

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