HLB has formalized its decision to move from the tech-heavy Kosdaq market to the main exchange of the Kospi market, entering into the shifting process.

Industry watchers pay attention to see if HLB, known as the "Kosdaq bellwether," can complete its listing on the Kospi market.

HLB said in a public filing Tuesday that it has selected Korea Investment & Securities as the lead manager for the transfer listing on the Kospi market.

On Aug. 24, while responding to the media report on its transfer listing, HLB said, "We are examining the advantages and disadvantages of the transfer to Kospi, but nothing concrete has been finalized yet."

Explaining the background behind the latest decision on Tuesday, HLB said that shareholders and investors have been demanding a move to the Kospi for a long time, and the company has recently suffered from indiscriminate short-selling attacks.

HLB shareholders are particularly concerned that HLB will be the main target of short sellers if Celltrion Healthcare, the top company listed on the Kosdaq market by market capitalization, is merged with Celltrion, according to HLB.

At noon (KST), HLB shares were trading at 30,850 won ($23), down about 11 percent from 34,700 won on May 15, the day before the company filed a new drug application for rivoceranib with the U.S. Food and Drug Administration (FDA). According to HLB, the outstanding short-selling balance, which stood at 4.2 million shares then, is now over 8 million.

"As part of our efforts to enhance shareholder value, we signed a listing agent selection agreement with Korea Investment & Securities today to list on the Kospi market," HLB CEO Baek Yoon-ki said. "We are examining various ways for transfer listing on Kospi.”