[Samsung Electronics]
SEOUL -- Three days after its trading was suspended for an unusual stock split, Samsung Electronics made its successful comeback Friday, sparking a buying spree by retail investors who had not been able to buy South Korea's most valuable stock.
The world's largest smartphone maker closed at 51,900 won (48.19 US dollars) after its trading resumed at 53,000 won with a fresh face value down from 5,000 won to 100 won.
The 50:1 stock split brought up the number of common stocks to more than 6.41 billion from 128.3 million. Retail investors hailed the split because they can buy Samsung shares at an affordable price. Samsung's share price on the final day of trading on April 27 was 2,650,000 won.
Analysts said the stock split would play a positive role in boosting Samsung's corporate governance as it will increase the number of investors. Samsung has long been the target of strategic investments by foreigners.
"There have been a number of studies showing that a stock split is a good tool to fend off (hostile) mergers and acquisitions," said Lee Seung-woo, an analyst at Eugene Investment & Securities.
reporter
Lim Chang-won
cwlim34@ajunews.com
