On the 18th, Solux is plunging more than 25% on news that Aribio is considering a standalone listing.
As of 3:20 p.m. that day on the KOSDAQ market, Solux is trading at 5,720 won, up 150 won (2.69%) from the previous session. The stock, which had surged more than 25% earlier in the day, also fell 25% intraday and traded at 4,150 won.
Recently, Solux had continued to rally on expectations of a merger with Aribio, a developer of Alzheimer's disease treatments. In particular, investor sentiment improved sharply after word spread that Aribio signed an exclusive licensing deal worth $4.7 billion (about 7 trillion won) with China's Fosun Pharma for the global development and commercialization of the oral Alzheimer's disease drug candidate "AR1001." As a result, Solux hit the upper price limit for two straight sessions.
Under the deal, Aribio will first receive a $60 million (about 90 billion won) upfront payment and an additional $80 million (about 120 billion won) upon the topline readout of global phase 3. It also plans to secure milestones at each approval and commercialization stage and royalties of up to 20%.
However, the mood reversed sharply that day after Aribio raised the possibility of a standalone listing at a press briefing. Co-CEO Seong Su-hyun of Aribio said, "The push for a merger with Solux is still underway," but added, "We are also keeping the possibility of a KOSPI listing open in addition to the existing KOSDAQ listing and are reviewing it as another option."
The market sees this as effectively leaving the door open to an independent initial public offering (IPO). It is interpreted that disappointment selling poured in on concerns that the "expectation of Aribio's backdoor listing," which had driven up Solux's stock, could weaken.