Shinhwa Dynamics (SHD) is experiencing a significant decline as concerns grow over its potential delisting due to failing to meet market capitalization requirements.
As of 1:48 PM on September 14, SHD shares were trading at 7,990 won, down 13.62%. The stock has fallen for six consecutive trading days since September 7, dropping 45.2% from 14,590 won to its current price. Its market capitalization has also fallen to approximately 9.7 billion won, dipping below the 10 billion won threshold.
On September 8, the Korea Exchange warned SHD about the risk of delisting due to its insufficient market capitalization. The company was designated as a management issue on June 26 after failing to meet the market capitalization criteria for 30 consecutive days.
According to the exchange, to avoid delisting, SHD must maintain a market capitalization above the threshold for at least 10 days during the 90 days following its designation. However, as of September 8, SHD had not recorded a day above the threshold since being designated a management issue 50 days prior.
Notably, the market capitalization threshold for the KOSPI market was raised from 20 billion won to 30 billion won on July 1. The exchange indicated that if SHD's market capitalization remains below the threshold for 61 days, it will initiate delisting procedures due to the inability to meet the criteria for 30 days or more.
* This article has been translated by AI.
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