SEWON E&C, a KOSPI-listed company facing delisting, fell more than 90% early on the 16th, the first day of liquidation trading.
As of 9:20 a.m., SEWON E&C was trading at 115 won, down 1,155 won (90.94%) from the previous session.
Chemical plant specialist SEWON E&C saw its trading halted on Apr. 7, 2023. The reason was the emergence of embezzlement and breach of trust allegations worth about 55 billion won against the management of Digital Kingdom Holdings, a special purpose company (SPC) that acquired SEWON E&C in 2022, and the company receiving a "disclaimer of opinion" from auditors for two consecutive years.
Management pursued procedures for normalizing operations and resuming trading, but the Korea Exchange main board listing disclosure committee decided on delisting on Mar. 4 this year. The company then filed for an injunction to suspend the effect of the delisting decision.
However, on the 2nd, the court dismissed the application for an injunction to suspend the effect of the delisting decision, and liquidation trading will proceed from that day through the 24th.
In liquidation trading, individual competitive transactions are executed at a single price every 30 minutes, and unlike regular transactions, there is no daily price limit (upper or lower), making volatility extremely high. SEWON E&C's final delisting date is the 27th of this month.