Celltrion announces bonus stock issuance to enhance shareholder value

Celltrion said it will issue bonus shares at a ratio of 0.04 new shares for every existing common share held, as part of its ongoing efforts to enhance shareholder value.

The new shares, totaling 8,477,626, will be listed on July 25, 2025. Shareholders eligible for the bonus issuance will be determined based on the shareholder registry as of June 10, 2025.

The company said the bonus issue size was carefully decided, considering the company's previously repurchased treasury shares, ensuring minimal pressure on stock liquidity. The timing of the new share listing coincides closely with Celltrion's anticipated second-quarter earnings release, also expected around late July.

Unlike share cancellations, bonus issuances are recognized as a proactive shareholder return strategy, allowing investors to benefit from increased market value through additional shares. As a result of this bonus issuance, Celltrion shareholders can expect an approximate 4 percent stock dividend effect.

Celltrion has been actively implementing a comprehensive "Value-Up Program," initiated in March this year, including activities such as share buybacks, treasury stock cancellations, and stock purchases by senior executives.

“These measures are intended to stabilize stock prices and encourage long-term investment by demonstrating responsible management practices,” the company said.

The company's consistent growth is supported by the robust performance of its product lineup, achieving annual revenue increases of more than 30 percent. Celltrion projects a revenue growth exceeding 40 percent year-over-year in 2025, boosted by the planned launch of four high-profit biosimilar products.

The decision for the bonus stock issuance reflects Celltrion's confidence in its intrinsic corporate value and future growth prospects, especially amid recent market undervaluation caused by external factors like the resumption of short selling and ongoing tariff issues.

Celltrion also stated its commitment to continue measures aimed at bolstering shareholder confidence.

If the company's market value remains excessively undervalued, additional stock repurchases and increased ownership by senior management are planned.

"Despite maintaining consistent annual revenue growth of over 30 percent, external market factors have significantly undervalued our stock," a Celltrion official said. "We will actively counter market distortions and uphold our principle of returning more than 30 percent of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)-CAPEX (Capital Expenditures) to shareholders, excluding capital investment costs.”

Through these measures, we aim to maximize shareholder value over the medium to long term, he added.