 |
[Alpha Biz=(Chicago) Reporter Paul Lee] The Financial Supervisory Service and the Korea Exchange have announced that they will review whether Fadu (440110), which has recently been embroiled in controversy over its "initial public offering (IPO)," inflates its performance.
According to financial authorities on the 14th, the Financial Supervisory Service and the exchange recently decided to reconfirm whether the results submitted during the listing review to Fadu, its representative listed organizer NH Investment & Securities and co-host Korea Investment & Securities were appropriate.
The two organizations first plan to find out why there was a big gap between the forecast presented at the time of listing on the KOSDAQ market and the actual performance. According to the KOSDAQ market listing regulations, if a matter important to investor protection is falsely stated or omitted in a listing-related application or attachment, it can be designated as a management item or abolished.
A Financial Supervisory Service official said, "We will reconfirm the earnings estimates submitted at the time of the listing review through Fadu and the organizer." "We will check where there are many deviations from the performance estimates presented by Fadu," a source at the exchange said. "We have no plans to look into whether Fadu's listing review was appropriate or whether the listing was appropriate."
Earlier, Fadu and listed organizers announced their shockingly small first-quarter earnings on the 9th of this month, sparking controversy over their "poor due diligence." As the controversy spread, stock prices, which stood at KRW 34,700 on the 8th before the earnings announcement, plunged 29.97% on the 9th and 21.93% on the 10th, falling to the KRW 10,000 level. The day closed at 19,040 won, up 0.37% from the previous trading day. The market capitalization also evaporated 761.9 billion won in three days from 1.6893 trillion won on the 8th to 927.4 billion won on the same day.
Fadu said it recorded sales of 59 million won in the second quarter and 300 million won in the third quarter, which was far short of the estimated annual sales of 120.3 billion won this year, which was specified in the investment manual at the time of listing. Sales in the first quarter just before Fado was listed were 17.6 billion won, with cumulative sales of only 17.96 billion won in the third quarter.
The industry pointed out that Fadu's fourth-quarter sales outlook is also bleak. Fado's fourth-quarter sales identified so far are only $2.61 million (about 3.5 billion won) related to the Gen5 controller, which was ordered on June 16 this year and paid on the 31st of last month.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
