News: IHL Incannex Healthcare Ltd Files To Withdraw U.S. IPO Plans, page-18

The initial plan was to create more shares (dilutes the current) , the newly created shares to be used to raise capital as IPO.

Now, the company still wants to list in the US, but the element of capital raising has been abolish, therefore no longer needs to dilute any current shares. When listed, US investors might need to dig into Aus shares.
The company also mention offering options. It is also a form of raising capital. I am guesing the financial outcome for IHL at the end might be about the same.