SM Sangseon, IPO Postponed... Uncertain Listing Within This Year

[Asia Economy Reporter Dongwoo Lee] SM Line announced on the 3rd that it will temporarily postpone its initial public offering (IPO).

SM Line conducted a demand forecast among institutional investors on the 1st and 2nd, but considering the recent sluggish atmosphere in the public offering market and the stagnant stock prices of its peer group and shipping stocks, it judged that the market's valuation of SM Line's public offering shares did not meet expectations. Therefore, in consultation with the lead underwriter NH Investment & Securities, it decided to temporarily postpone the future IPO schedule.

Although global shipping companies worldwide are continuously posting record-high profits and the company's stock price is also rising, domestically, despite this profitability improvement, excessive concerns about the peak-out of the shipping market, decreased demand in the public offering market, and concerns about domestic and international stock markets have led to the judgment that an appropriate valuation cannot be received.

SM Line explained, "We have completed all procedural preparations, including successfully passing the preliminary listing review, but rather than rushing to complete the listing, we decided to dispel market concerns for the time being, closely observe the market, and re-pursue the listing at an appropriate time when demand in the public offering market recovers."

It also added that since shares have not yet been allocated to institutional or general investors, there are no investor-related issues.

This content was produced with the assistance of AI translation services.