Dunamu Completes US GAAP Conversion in Push for US Nasdaq Listing
Forecast Trend Report by Period
Dunamu, the operator of South Korean crypto exchange Upbit, has completed the conversion of its financial statements to US Generally Accepted Accounting Principles as it moves toward a US listing, the Chosun Ilbo reported on Aug. 24.
The company recently finished converting its existing financial statements to US GAAP through a major South Korean accounting firm, the newspaper reported. Preparing US GAAP-compliant statements is a required step for companies seeking to list on a US exchange.
Dunamu has been pursuing a comprehensive stock swap with Naver Financial since September of last year. The companies were valued at about $10.8 billion for Dunamu and about $3.6 billion for Naver Financial, implying an exchange ratio of 2.54 Naver Financial shares for each Dunamu share. A shareholder meeting is scheduled for Nov. 19, and the stock swap is set for Dec. 31. The companies had originally planned the meeting for May 22 and the swap for June 30, but delayed the timetable twice.
The companies are also pursuing a plan to complete a listing within a certain period after the stock swap, according to the report. The US GAAP conversion was part of those preparations for a US listing. “Converting to U.S. accounting standards is a procedure required for a U.S. listing,” a senior official at South Korea’s financial authorities said. The official added that whether an individual company pursues a US listing is not a matter for regulators to interfere in.
An American depositary receipt, or ADR, is under discussion as a possible route for Dunamu’s US listing. A so-called flip structure, in which the company would establish a separate US holding company and place the Korean entity under it as a subsidiary, has been excluded as an option, the report said. Using an ADR would allow Dunamu to keep its corporate entity in South Korea while listing on a US exchange.
