On March 14th, IT security and authentication platform company RaonSecure’s board of directors decided to merge five common shares into one, according to a statement. This stock merger is a strategic decision to stabilize the stock price and enhance corporate value, aiming to maintain an appropriate number of circulating shares, thereby providing a stable investment environment for investors.
After the merger, the face value per share of RaonSecure will increase from 500 KRW to 2,500 KRW, with no change in capital. The total number of issued shares will decrease from 56,025,871 to 11,205,174.
The final decision on the stock merger will be made at the shareholders’ meeting on March 31st, with the new shares effective from April 15th. The trading suspension is scheduled from April 11th to May 2nd, and the new shares are expected to be listed on May 7th. Any fractional shares resulting from the merger will be paid in cash based on the closing price on the last trading day before the new shares are listed.
RaonSecure recorded a consolidated provisional sales figure of 62.49 billion KRW last year, marking a 20% growth compared to the previous year and achieving the company’s highest performance since its establishment. The operating profit turned positive, improving profitability at 1.967 billion KRW.
Notably, there has been balanced growth in blockchain-based digital ID, white hat consulting services, and platform sectors. Contributions to growth were significantly made by digital ID projects in foreign countries and the expansion of Japan’s “subscription-based biometric authentication service.”
The company plans to further expand its blockchain-based digital ID business, offering various mobile certificates like ID cards, qualifications, and medical certificates as mobile IDs proliferate. It will also strengthen its authentication and access control business, featuring cloud-based SaaS services optimized for the ‘Zero Trust Guideline 2.0’ strategic platform.
The overseas digital ID business will also be expanded. Following the successful implementation of digital ID projects in Indonesia and Costa Rica last year, RaonSecure plans to extend its business to Central and South America, Southeast Asia, Central Asia, and Europe. The “subscription-based biometric authentication service” currently offered in Japan will also be expanded to countries such as the United States.
The company continues to make investments in future technologies, expanding the application of ‘post-quantum cryptography (PQC)’ to its solutions to counter cyber-attacks utilizing quantum computers and developing a B2B business using generative AI-based deepfake detection technology. Additionally, the advancement of AI-based tutor and coaching technology in Raon Metademy’s platform is underway.
Lee Soon-hyung, CEO of RaonSecure, explained, “This stock merger is part of an investor-friendly policy to provide a more stable investment environment, strengthen stock price stability, and increase corporate value,” adding, “We will gradually establish a foundation for corporate growth.”