[Edaily Reporter Kim Hyung-il ] B2B (business-to-business) software company IQUEST Co., Ltd.(262840)announced on the 10th that it will cancel treasury stock equivalent to 3% of its total outstanding shares.
IQUEST Co., Ltd. CI. (Photo courtesy of IQUEST Co., Ltd.)
IQUEST Co., Ltd. announced today that it will retire 317,000 shares of treasury stock it currently holds to stabilize the stock price and enhance shareholder value. The retirement is scheduled for the 15th.
The treasury shares to be canceled in this transaction are common shares previously acquired by the company. They account for approximately 3% of the current total issued shares of 10,566,952 shares and are valued at approximately 1.5 billion won based on book value.
The cancellation will be carried out by canceling treasury stock acquired within the scope of distributable profits. Consequently, while the number of issued shares will decrease, there will be no change in the company’s capital stock.
IQUEST Co., Ltd. had previously acquired treasury stock as part of its shareholder return initiatives. In 2024, the company entered into a treasury stock trust agreement worth 1 billion won and acquired shares with the aim of enhancing shareholder value.
The company has also continued to pay cash dividends. IQUEST Co., Ltd. has paid year-end dividends for 16 consecutive fiscal years and was selected as a high-dividend company earlier this year. By deciding on this cancellation following the acquisition of treasury stock and dividend payments, the company is demonstrating its commitment to a sustained shareholder return policy.
IQUEST Co., Ltd. plans to further strengthen its shareholder return strategy following this share cancellation. The company is keeping the door open for additional share repurchases and cancellations in the future and intends to continue cash dividends as a core shareholder return policy, taking its financial condition and other factors into account.
An IQUEST Co., Ltd. official stated, “We decided to cancel treasury shares to support shareholders and investors who are facing difficulties due to the recent decline in our stock price, which has led to our corporate value being undervalued,” adding, “We will continue to review and implement various policies that can enhance shareholder value alongside growth through the expansion of new businesses.”
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