90 million shares ready for tradingThe Korea Securities Depository said yesterday that 90 million shares at 33 companies that had been prohibited from sale will begin to trade normally next month.
The safeguard deposit rule bans major shareholders from selling shares for a certain period following a capital increase or initial public offering to protect minor stockholders. Shares listed on the main exchange may not be sold for six months after an initial public offering, and shares on the Kosdaq are banned from sale for one year.
The rule expires next month for some 32 million shares at seven companies on the main exchange and 58 million shares of 26 companies listed on the Kosdaq.
“Even if the rule is lifted, not all stocks are going to be sold on the market,” said Cho Han-byeong, a public relations official at the securities agency. “But just the concerns over the large amount can affect stock prices.”
By Limb Jae-un Staff Writer [firstname.lastname@example.org]