Gaon Electric Wire is continuing its upward trend for a fourth consecutive trading session, driven by news of a decision to issue free shares.

In the stock market on the 18th, Gaon Electric Wire showed strength, breaching the 400,000-won level during the session. Over the past four trading days, the share price has risen by approximately 59,000 won, marking an increase of around 17%.

The key catalyst stimulating investor sentiment is the free share issuance. On the 16th, Gaon Electric Wire announced through a regulatory filing that its board of directors had decided to carry out a free share issuance by newly issuing 13,234,492 common shares. The allocation will be conducted at a ratio of 0.8 new shares for every existing share held, targeting shareholders registered on the shareholder registry.

The record date for the new share allocation is July 1, and the new shares are scheduled to be listed on July 23. The total number of issued shares before the capital increase was 16,543,115, which will increase to approximately 29,777,607 shares following the free issuance. The source of funds for the new shares is 66.17 billion won in capital surplus (share premium).

While a free share issuance does not inherently change a company's fundamental value, it often attracts investor attention due to expectations of increased trading activity resulting from a larger float.

In particular, the market analyzes that expanding investments in power infrastructure and growing electricity demand related to data centers and artificial intelligence (AI) are supporting investor sentiment across the overall electric wire sector. Gaon Electric Wire's free share issuance has added to expectations of improved liquidity, leading to an inflow of buying interest.

[※ This article was written with the assistance of AI. Investment decisions are the sole responsibility of the investor, and the content included in this article may change depending on market conditions.]