(Reuters) -Green energy and technology company DeepGreenX Group withdrew its registration statement for a direct listing in the United States on Monday, as the federal government shutdown hit the 20-day mark.
In a filing with the U.S. Securities and Exchange Commission, DeepGreenX said the company had decided not to pursue the offering given processing delays and its inability to communicate with the agency’s staff during the ongoing shutdown.
The SEC is currently running only essential functions on a skeleton staff and not processing registration statements.
However, the Wall Street regulator had earlier this month eased the way for companies to proceed with initial public offerings, which has encouraged companies to press ahead with their listing plans
Half a dozen companies have turned to the rarely used 20-day rule to proceed with their IPOs amid the ongoing shutdown.
Drug developer MapLight Therapeutics is poised to price its offering later this month after tapping the 20-day rule, according to a marketing presentation.
White House economic adviser Kevin Hassett said on Monday the government shutdown was likely to end this week.
DeepGreenX, founded in 2020 and headquartered in Seoul, provides green logistics supply chain services and is developing an asset-to-digital currency platform.
Certain existing shareholders of DeepGreenX had planned on selling up to 93.75 million shares in the direct listing.
The direct listing route allows companies to avoid selling new shares as well as the costs of a traditional IPO.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Krishna Chandra Eluri)
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