The Korea Stock Exchange announced on Monday that Samsung Electronics will suspend trading for three days before the stock is split.
As of Monday, Samsung Electronics ranked fourth in Asian market capitalization. Samsung Electronics announced a 50:1 stock split plan in January in order to make it easier for retail investors to hold Samsung stock.
The Korea Stock Exchange said that the specific date of suspension of the transaction will be announced by Samsung Electronics. Previously, Samsung said in a regulatory filing that the newly split stock is expected to be listed on May 16.
The South Korean Stock Exchange said in a statement that the suspension of the transaction is to handle related procedures such as data processing and the submission of old stocks. Usually the suspension time is about 15 days. The suspension is relatively short, and the purpose is to suspend the trading. The impact of investor liquidity is minimized.
As of Monday, Samsung Electronics accounted for approximately 20% of the market value of the Korea Composite Stock Index.