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NH Financial Tower. (Photo = NH Investment & Securities) |
[Alpha Biz=(Chicago) Reporter Paul Lee] A special judicial police officer at the Financial Supervisory Service, which is investigating the controversy over the "fraud listing" of semiconductor design firm Fadu that erupted last year, raided NH Investment & Securities Co., which was the lead organizer of the listing.
According to the financial investment industry on the 19th, the Financial Supervisory Service's special judicial police raided the headquarters of NH Investment & Securities Co. in Yeouido, Seoul, to secure data on the listing of Fadu. The special judicial police are known to be looking into whether the host company intentionally inflated its corporate value even though it knew of the possibility of a sharp drop in its performance during the Fadu Initial Public Offering (IPO) process last year.
Fadu, which was listed on the KOSDAQ market as a technology exception in August last year, has drawn attention as a "unicorn" company with a corporate value of more than 1 trillion won in recognition of its technological prowess even before its initial public offering. At the time of the listing, it entered the KOSDAQ market by attracting 1.5 trillion won (based on the initial public offering price), but was embroiled in controversy over its "exaggerating listing" three months after its listing.
After attracting investors at a high public offering price based on sales (17.66 billion won) in the first quarter of last year, sales evaporated The reason was that the company belatedly disclosed its second-quarter earnings after a public offering. As sales in the third quarter, which was also unveiled, were sluggish at around 300 million won, Fado's stock price plunged to 16,250 won, half of the initial public offering price on Nov. 14 last year.
Fadu shareholders filed a class action lawsuit against NH Investment & Securities on the 14th.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
