[Themed Stocks] Three Thousand Miles Bicycle, trading resumes after maintaining the listing decision... management of the variety also lifted restrictions

As the Korean exchange decided to maintain the listing qualification, Sanqianli Bicycle is about to resume trading. Previously, trading was suspended due to the company’s actual controller being suspected of embezzlement and misconduct, and the market had worried about a potential delisting. However, the Corporate Review Committee approved its listing qualification, largely alleviating the uncertainty.

According to the announcement from the Korea Exchange, the exchange held a Corporate Review Committee meeting and resolved to maintain the listing status of Sanqianli Bicycle’s stock. As a result, the trading suspension will be lifted, and it will also be removed from the management category.

This decision is interpreted as reflecting that the operational uncertainties leading to the trading suspension have been alleviated. Previously, Sanqianli Bicycle was subject to substantive review of its listing qualification because its actual controller and chairman, Kim Seok-hwan, was suspected of embezzlement and misconduct involving about 1.3 billion Korean won. The company later submitted a business improvement plan, and it is reported that Chairman Kim has repaid the suspected misconduct amount.

The reference price for trading resumption will be determined through pre-market quotes before the opening, using a single-price auction within a range of 2,060 to 8,240 Korean won. Subsequently, the same price limits as for regular stocks will apply, with a ±30% range relative to the reference price. However, there will be no pre-market trading on the day of the resumption before the opening.

The market is likely to react first to the elimination of the delisting possibility and the normalization of trading. However, since this stock belongs to the category of stocks resuming trading after suspension, initial price fluctuations may be significant, and investors should be cautious.

Source: Korea Exchange Announcement System, comprehensive reports