Netmarble (251270.KS), a major South Korean mobile game publisher, will cancel the initial public offering of its key subsidiary Netmarble Neo, the developer of "Solo Leveling: Arise," and convert it into a wholly owned subsidiary.
According to industry sources on Monday, Netmarble has decided to proceed with a comprehensive share swap with Netmarble Neo. The company said the decision aims to strengthen control over its high-performing subsidiary and improve management efficiency and financial soundness.
Netmarble said it expects the share swap to align shareholder interests between the two companies, enabling faster and more efficient management decisions. The company also forecast a positive impact on corporate value by addressing long-standing market concerns over dual listing.
To protect shareholder interests, Netmarble plans to purchase and retire treasury shares equivalent to the volume of new shares issued during the swap process, minimizing concerns over share dilution.
"Given the recent negative market perception of dual listings and changes in the regulatory environment, we determined that withdrawing the listing better serves shareholder interests," a Netmarble official said. "This decision will eliminate concerns over potential shareholder value erosion and promote management efficiency."