Rokit Healthcare's shares fell nearly 20% in early trading following the announcement that its U.S. subsidiary has voluntarily withdrawn its Nasdaq listing application.
As of 9:39 a.m. on July 29, Rokit Healthcare's stock was trading at 31,450 won, down 7,700 won (19.67%) from the previous trading day, according to the Korea Exchange.
The decline in share price is attributed to a correction notice regarding significant management matters of its subsidiary, Rokit America, Inc., which stated that it had withdrawn its application for listing on the Nasdaq Global Market.
According to the company, Rokit America decided to pursue a Nasdaq listing in April through a board resolution and submitted its application. However, on July 27, it received official notification from Nasdaq that the application had been voluntarily withdrawn.
This withdrawal reflects Nasdaq's concerns that the expected free float ratio post-listing would be around 10%, potentially leading to increased stock price volatility. Rokit America explained that it withdrew the existing application to explore options for increasing the free float ratio.
The company noted that this withdrawal concludes the current listing process, and Nasdaq also communicated that it does not impose restrictions on future listing applications.
Initially, Rokit Healthcare planned to raise approximately $25 million through the Nasdaq listing of its subsidiary, Rokit America.
As disclosed on May 11, Rokit America had submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC) and was undergoing Nasdaq listing review, with the underwriter, Maxim Group LLC, set to fully underwrite the offering.
Based on the midpoint of the proposed offering price range of $9.50 per share, 2,631,579 new shares were to be issued, resulting in a total of 27,631,679 shares post-listing, with an estimated market capitalization of approximately $262.5 million (about 380 billion won). The underwriter also planned to allow for an over-allotment option of 394,737 shares to be exercised within 45 days post-offering, as part of the specific procedures for the U.S. stock market listing.
* This article has been translated by AI.
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