Key details
The Exchange reviews managerial stability of a listing applicant in terms of the relationship among shareholders, the details of the change in shareholdings of the applicant company in order to prevent any unfair transfer of corporate wealth or dilution of stock prices to be listed prior to the listing.
For the listing on KOSPI market
In case where the largest shareholder was changed prior to listing, the Exchange reviews whether or not the stability of management would be maintained following the change.
Also, in case where there were important changes regarding business management such as merger (excluding small-scale merger), split-off, merger after split-off, and acquisition or transfer of entire business or a material part of the business, etc., the results of such business decision-makings should be verifiable and fully disclosed to the investing public.
When such changes arise, KRX allows the company to apply for listing after finalizing the annual financial statement of the business year. In particular, if the period from the due date of the merger, etc. to the end of the business year is less than 3 months, the company is allowed to apply for listing after fixing the closing financial statement. However, when a corporation listed on the KOSDAQ market wants to transfer to the KOSPI market, it may apply for listing on the year of merger, except for a case in which the merged company has recorded net loss for the latest financial year.
For the listing on KOSDAQ market
Corporations wanting to list their shares on the KOSDAQ Market must satisfy the listing requirements provided in the KOSDAQ Market Listing Regulation. The KRX determines the qualification as a listed corporation through reviewing whether the applicant company satisfies both the quantitative criteria including financial status, share ownership distribution, etc. and the qualitative criteria in such terms as a going concern, management transparency, etc. A listing applicant company to the KOSDAQ Market should complete the preparation process of entering into an underwriting contract with a lead manager, application of external auditor designation, etc. and then apply for the listing eligibility review to the KRX.
Following the KRX's approval of listing after the listing eligibility review, then there will be IPO processes such as filing of the securities registration statement, book-building, finalizing the public offering price, etc., after all of which the trading at the KOSDAQ Market begins to complete the whole listing procedures.