75 Companies Delisted in 2017-2021 Period
The Financial Supervisory Service (FSS) said on Nov. 2 that the risk of delisting is rising in some companies.
According to the FSS, 75 companies were delisted in the period of 2017 to 2021, including 12 in 2017 and 20 in 2021, their net loss in relation to equity capital rapidly increased before delisting, and they tried to increase their capital by CB issuance, paid-in capital increase, etc.
“They frequently issued a lot of CBs, BWs and EBs instead of general debentures,” it explained, adding, “They preferred means of financing that does not have to be reported, such as private financing and small-scale open financing.”
“When it comes to non-financial characteristics, they showed a frequent change in the largest shareholder before delisting,” it went on to say, continuing, “In addition, they showed a tendency of inadequate disclosure before delisting and this had to do with their inadequate internal control.”