Analysts downplay Samsung BioLogics’ delisting
[THE INVESTOR] Analysts here downplayed on Nov. 15 the potential delisting of Samsung BioLogics following a ruling by Korea’s financial regulator that the sixth-highest valued company on KOSPI is guilty of accounting irregularities.
The contract drug manufacturer will wait for a decision from the country’s bourse operator if it should come under review for 15 business days while preparing for an administrative suit to overturn the Financial Services Commission’s ruling.
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Trading of Samsung BioLogics shares halted
Amid mounting concerns over the company with a market cap of 22 trillion won (US$19.50 billion), Daishin Securities analyst Hong Ga-hye said the probability of delisting is low given that all the companies that have gone through the deliberation process so far have maintained their listing status.
“There is a limited possibility of delisting as the stock exchange will systematically consider the company’s operational sustainability and management transparency as well as investor protection (for the decision),” she said.
With no clear date given on how long the trading halt will continue, uncertainties surrounding the firm will be persistent and dampen investor sentiment toward biopharmaceutical stocks in the short term, NH Investment & Securities analyst Ku Wan-sung said.