The listing push by HANCOM InSpace, an artificial intelligence (AI) data analytics company under HANCOM Group, has fallen through. It failed to clear the first hurdle, the listing review by the Korea Exchange (KRX). Some analysts said controversy over a potential duplicate listing may have been a drag.
According to the investment banking (IB) industry on the 6th, HANCOM InSpace received a notice of nonapproval for its preliminary listing review from the KOSDAQ Market Headquarters of the Korea Exchange (KRX) the previous day. It came about five months after filing for a preliminary listing review in Aug. last year, becoming the first nonapproval case this year.
HANCOM InSpace had planned to debut on the KOSDAQ market in the first half of this year. It also passed a technology evaluation in June last year with "InStation," a platform that analyzes imagery collected by satellites and drones.
While the specific reason for nonapproval was not disclosed, some noted that controversy over a duplicate listing likely weighed on the review. HANCOM InSpace is held by HANCOM and Hancom WITH, and concerns about shareholder value erosion arose as the listing push proceeded.
HANCOM InSpace's business and earnings not getting on track also appears to have had a negative impact. The company's 2024 revenue was 7.6 billion won, a sharp decline from 12.7 billion won a year earlier. Operating losses also increased over the same period.
Meanwhile, the timing for investors' (FIs) exit from HANCOM InSpace has been pushed back. In Aug. last year, HANCOM InSpace conducted a pre-IPO (fundraising before listing), raising 12.5 billion won from POSCO Venture Capital and Cornerstone Investment Partners, among others.