April 19, 2024

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[THE INVESTOR] Celltrion has decided to convene an extraordinary general meeting on Sept. 29 to discuss its possible relisting on the nation’s benchmark KOSPI.

The meeting comes after some minority shareholders filed a petition on Aug. 16 for Celltrion, the most valuable stock on the secondary KOSDAQ, to be relisted on KOSPI to prevent massive short-selling transactions. 

Related:
Mixed outlook for Celltrion’s relisting on KOSPI


Celltion has been the target for short sellers since 2012 when the company requested an investigation into abusive short-selling practices. At the time, the financial authorities concluded there was no systematic move to reduce stock prices by short selling.

Experts agree on the positive impact when the stock moves to the first-tier bourse where investors prefer stable returns on safe stocks and it offers broader exposure to institutional investors.

But some critics expect a limited impact, saying more exposure to more investors means the higher possibility of being the target of short sellers.

Celltrion is the largest stock on the KOSDAQ with market capitalization of 13.5 trillion won (US$11.90 billion), while its marketing unit Celltrion Healthcare is the second largest cap with 6.7 trillion won. 

On the day, Celltrion shares closed at 110,500 won, up 0.91 percent from the previous trading session.

By Park Han-na (hnpark@heraldcorp.com)