April 19, 2024
Stocks & Bonds
KRX denies easing listing rules for Samsung BioLogics
[THE INVESTOR] South Korea’s bourse operator on Nov. 29 denied speculation that it eased listing rules for Samsung BioLogics’ market debut.
The biopharmaceutical unit of Samsung Group raised 2.25 trillion won ($1.97 billion) in the country’s second-largest share sale and made a strong debut on the KOSPI market Nov. 10.
The biopharmaceutical unit of Samsung Group raised 2.25 trillion won ($1.97 billion) in the country’s second-largest share sale and made a strong debut on the KOSPI market Nov. 10.
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Local media outlets on Nov. 28 reported that the Korea Exchange may had altered its stock market listing requirements in order to help the Samsung subsidiary raise funds by going public.
“The listing of Samsung BioLogics was carried out as a part of KOSPI market’s bold and broader plan to attract more new listings, not at the firm’s request (to ease the regulation),” the KRX said in a press release.
Last year, the KRX deleted one of the listing rules that the company should report an operating profit of 3 billion won for the latest fiscal.
The contract drug-making company has been posting operating losses for the past three consecutive years.
The KRX said allowing unprofitable but promising companies to go public is common in the US, exemplifying Tesla whose market capitalization has surged over 20 times after its NASDAQ debut despite making losses.
“The KOSPI market will continue to expand listing opportunities for companies that have high growth potential,” the bourse operator said.
By Park Han-na (hnpark@heraldcorp.com)
