ESTsoft (047560, CEO Chung Sang-won), a company specializing in AI services, disclosed on the 12th that by resolution of its board it has signed a KRW 2 billion treasury share acquisition trust contract to stabilize its share price and enhance shareholder value.
The contracting institution is NH Investment & Securities, and the contract runs for six months, from May 12 to November 11.
The company explained that the decision followed a judgment that ESTsoft's share price has been correcting recently as domestic and international tech stocks fall on inflation and interest rate rises, and that the price is undervalued relative to the company's worth.
It is part of shareholder-friendly management, coming less than a year after the KRW 2 billion treasury share acquisition decided last September.
Through this contract ESTsoft expects to acquire about 178,571 treasury shares (based on the closing price on the 11th), around 1.6% of its total shares.
ESTsoft has been buying treasury shares continuously and currently holds 1,322,068 shares, equivalent to 11.62% of total shares issued.
A company representative said: "ESTsoft saw AI as a new business opportunity early, from 2016, and has developed the technology since; with that accumulated capability it is making its presence felt in the metaverse industry, which is now beginning to blossom," adding, "Where software and game revenue used to dominate, virtual humans, the virtual fitting-based commerce platform business and the techfin business will drive the company's growth from here."
He continued: "This treasury share acquisition was decided on the judgment that the current share price is very low, ahead of a quantum jump through a successful business transformation."
ESTsoft did indeed record its best-ever results in 2021, and has maintained revenue growth and an operating profit even as personnel costs rise across the IT industry and investment-type costs increase with the push into new businesses.
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