Telecommunications software company Telcoware is showing a downward trend in early trading on the 13th. Telcoware is believed to have failed to meet its target due to its attempt to initiate a voluntary delisting through a share buyback.
As of 9:23 a.m. on that day, Telcoware is trading at 13,550 won, down 1,050 won (7.19%) from the previous trading day.
Telcoware attempted a share buyback for its voluntary delisting but failed to meet its target volume by the previous day. Initially, it planned to buy back 2,332,438 shares, equivalent to 25.24% of the issued shares, but only managed to gather 41.4% of the target volume. To apply for voluntary delisting, more than 95% of issued shares, excluding treasury stocks, must be acquired, but due to this unsuccessful buyback, it only secured 73.5%.
Earlier, Telcoware's stock surged on news of its voluntary delisting. The price of Telcoware's buyback was set at 13,000 won, but as the stock price rose to the 14,000 won range, it appears that investors who responded to the buyback were disappointed. Following this failure of the buyback, Telcoware is expected to pursue a second buyback or engage in equity sales.