Dowooinsys, which was pushing for an initial public offering (IPO), had its listing process halted because it did not include certain shareholder agreements in the securities registration statement. The financial authorities intervened as the contract between the current largest shareholder and the previous largest shareholder was omitted.
Dowooinsys submitted a revised securities registration statement on 17th and halted the demand forecast targeting institutional investors that had been ongoing since the previous day. The Financial Supervisory Service noted that Dowooinsys had omitted important information for investment judgment, prompting a request to correct the securities registration statement period.
The current largest shareholder of Dowooinsys, a manufacturer of ultra-thin strengthened glass, is NEWPOWER PLASMA and its affiliates. NEWPOWER PLASMA acquired shares from the previous largest shareholder, Samsung Venture Investment, and entered into a revenue-sharing agreement. The agreement stipulates that if NEWPOWER PLASMA sells the shares at an amount exceeding double the acquisition price within five years of listing Dowooinsys, they must pay 10% of the amount exceeding double the acquisition cost from the sale proceeds. However, this contract was not recorded in the securities registration statement.
The FSS later recognized this fact and deemed it important information, given that it is a contract related to most of the equity held by the largest shareholder, leading to a request for a correction of the registration statement. The listing schedule for Dowooinsys is also expected to be delayed. Initially, the demand forecast was set to conclude on the 20th of this month, but the correction of the statement is likely to delay the listing by about three weeks.