Coreline Soft's shares plummeted on its first trading day on the tech-heavy Kosdaq market on Monday.

As of market close Monday, the company's shares stood at 35,000 won ($26.39), down 25.05 percent from its initial public offering price at 46,000 won. 

According to an analyst, the drop in shares is probably due to shareholders of Shinhan 7th special purpose acquisition company (SPAC), which merged with Coreline Soft to be listed on the Kosdaq market, selling their shares for profit.

"When a SPAC starts trading on the Kosdaq market, it sees an initial momentum, but soon sees little to no trading," the analyst told Korea Biomedical Review. "As a result, when the SPAC finally merges with an entity, most shareholders of the SPAC cash in their shares."

Due to the shareholders of Shinhan 7th special purpose acquisition company (SPAC) selling their shares for profit, it is not unusual for a company that went public through a merger with a SPAC to see its prices drop during the initial stages.

The analyst also noted that the AI medical imaging industry, once highly anticipated by investors, has seen a significant drop in share prices since reaching its peak around Sept. 10.

"It's not only Coreline Soft as medical AI imaging companies have been showing a decrease in price over the past week," the analyst told Korea Biomedical Review. "Lunit, a leading company in the sector, has seen a decline of almost 20 percent from its peak value, VUNO shares fell nearly 30 percent, and JLK has also retreated from its highs, with a nearly 20 percent decrease.

Founded in 2012, Coreline Soft is a pioneer in the realm of AI-based medical imaging software.

The company boasts a distinguished expertise in 3D CT (computerized tomography) image analysis and screening.

One of their flagship products, 'AVIEW LCS PLUS', offers a unique diagnostic solution. With a single low-dose chest CT scan, it can simultaneously detect pulmonary nodules, lung cancer, and coronary artery calcification.

Following its listing, Coreline Soft aims to lay the foundation for robust growth by continually expanding its new product pipeline and broadening the range of applications for its solutions. The company also intends to further solidify its leading position in the booming medical AI market, particularly in the chest CT solution sector.