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[Alpha Biz= Kim Jisun] Dowooinsys, a South Korean manufacturer of ultra-thin tempered glass aiming to list on the KOSDAQ, has postponed its IPO schedule due to the omission of a shareholder agreement from its initial securities registration statement. The oversight has raised concerns over lead underwriter Kiwoom Securities’ due diligence and disclosure responsibilities.



According to the revised filing on June 17, Dowooinsys belatedly disclosed a profit-sharing clause in a shareholder agreement between current largest shareholder New Power Plasma and former shareholder SVIC No. 48 and 29 Funds. The agreement states that if Dowooinsys shares are sold before January 31, 2029, at more than twice the offering price, 10% of the excess profit must be paid to SVIC No. 55 Fund or a designated entity.



Despite the clause, Dowooinsys noted that the shares in question are subject to a mandatory 3.5-year holding period post-IPO, limiting the possibility of early disposal.



The Financial Supervisory Service (FSS) flagged the omission, emphasizing the material nature of the agreement for investor decision-making. As a result, Dowooinsys suspended institutional book-building midway through and pushed back its IPO timeline by approximately three weeks. The new institutional demand forecast period is July 3–9, with the public subscription set for July 14–15.



The incident has sparked criticism of Kiwoom Securities, which oversaw the IPO process. Market observers point to possible shortcomings in basic verification procedures, especially since the shareholder agreement was already disclosed in a previous filing by New Power Plasma.



Although the omission may not have been intentional, the failure to communicate this information to the Korea Exchange during the IPO review process has drawn scrutiny, with some alleging a deliberate lack of transparency.

 

 

 

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