Oasis announced its decision to withdraw its IPO.
The move comes after Kurly, another e-commerce company planning an IPO, postponed its listing schedule last month due to poor demand forecasts.
Amid growing concerns about the health of the public stock market, Oasis has filed a notice of withdrawal and announced that it would pull out of KOSDAQ.
The company has not allocated shares to institutional investors participating in the demand forecast.
There are no investor protection issues; the offering was directed only to general investors.
Oasis conducted a demand forecast for institutional investors on July 7 and 8 but was unsuccessful.
The company had proposed a desired offer price of KRW 35,000 to KRW 39,500.
Nevertheless, it could not finalize the offer price as most institutional investors placed orders for less than KRW 20,000.
The total number of shares offered by Oasis was 5.23 million, with a market capitalization of KRW 96.79 billion to KRW 1.25 trillion based on the offer price.
Of these shares, 70 to 75 percent were allocated to institutional investors.
One of the burdens on Oasis’ IPO was the high proportion of sales to previous owners among the publicly offered shares.
Oasis sold 1.51 million shares, representing 30 percent of the total 5.23 million shares offered.
This is the amount held by the largest shareholder, GAEASOFT, which could realize a profit of at least KRW 47.9 billion and up to KRW 62.1 billion, depending on the offer price range.
Oasis tried to allay concerns about selling old shares by emphasizing the synergy with GAEASOFT.
However, more was believed to be needed to restore investor sentiment, given the sluggish e-commerce industry.
An Oasis official said, “The IPO market has shrunk recently due to the deterioration of the internal and external economy, which has had a very negative impact on investor sentiment, and it is difficult to properly evaluate the company’s valuation given the current market conditions.”
The official said, “Oasis is the only company in the industry in the black and already has the financial resources to sustain growth. Therefore, we have decided to withdraw the listing because we believe there is no reason to pursue the listing unnecessarily.”
Despite this setback, Oasis plans to pursue a secondary listing later if the company can achieve an appropriate valuation.
The company expressed gratitude to the investors interested in Oasis and its differentiated competitive and growth strategy.
Oasis is committed to continuing its mission to democratize organic food by providing consumers with high-quality, functional products at affordable prices based on innovative logistics technology.