The South Korean company Kakao Games has decided to increase its shareholder value. To achieve this, it plans to take radical measures by canceling some of the shares it had previously repurchased from shareholders.
Chrono Odyssey
In total, 500,000 securities will be "cut." This represents approximately 60% of the total volume of shares currently held on Kakao Games' own balance sheet. The company plans to annul them by next week, on July 15.
As explained by Kakao Games in an investor note, ultimately, this move will help avoid the dilution of stock value and increase the actual value of shareholders' stakes.
It should be noted that at the time of writing, Kakao Games shares are priced at 8,340 won ($5.55) each on the stock exchange. After the announcement, they increased slightly by 1.7%. Meanwhile, the total market capitalization of Kakao Games stands at 894.42 billion won ($594.7 million).
Kakao Games is a major publisher, primarily specializing in MMORPGs. For instance, the company is currently preparing for the global release of Chrono Odyssey and ArcheAge Chronicles and has previously released games such as Odin: Valhalla Rising, Guardian Tales, and Elyon.