Netmarble said on March 25 it will proceed with a comprehensive share swap with its key development subsidiary, Netmarble Neo.

The decision withdraws Netmarble Neo's initial public offering and folds it into Netmarble as a wholly owned subsidiary. Netmarble said the move is intended to further solidify its control over a strong subsidiary and to raise management efficiency and financial soundness.

It expects the comprehensive share swap to align shareholder interests between Netmarble and Netmarble Neo, creating an environment that enables more efficient and faster management decisions.

It also expects the move to boost corporate value by proactively resolving concerns raised in capital markets over duplicate listings.

Netmarble also plans to buy back and cancel treasury shares equivalent to the scale of new shares issued through the comprehensive share swap to substantively ease concerns over equity dilution and protect shareholder interests.

Netmarble Neo will focus on developing new titles to strengthen its core competitiveness. It is preparing various new titles, including the roguelite action RPG "Solo Leveling: Karma," slated for release in the second half of this year, as well as "Project Bloomwalker."

A Netmarble official said the goal of maximizing shareholder value is the same both when it previously pushed for a listing and now, after deciding on a full withdrawal. The official said it judged that withdrawing the IPO better aligns with shareholder interests given recent negative market sentiment toward duplicate listings and changes in the regulatory environment. The official added that the decision will block potential concerns about damage to shareholder value, pursue management streamlining, and prevent equity dilution through share buybacks and cancellations.