LHN proposes delisting from Hong Kong due to low trading volume, costs

[SINGAPORE] Real estate player LHN has proposed a voluntary delisting from the mainboard of the Stock Exchange of Hong Kong (HKEX) due to concerns over trading volume and costs.

The decision was approved unanimously by its board of directors on Jun 30, the company disclosed in a bourse filing on Friday (Jul 4). It still plans to retain its primary listing on the mainboard of the Singapore Exchange (SGX).

LHN noted that over the past year up to Jun 30, its average trading volume on the HKEX was 64,366 shares, representing just 0.02 per cent of its total trading volume in both Singapore and Hong Kong.

“This showed that there has been little demand from investors in Hong Kong to drive liquidity in the shares (on the) HKEX, as evidenced by the limited number of shareholders and low trading volume,” LHN said in the filing.

It also reflects investors’ preference to hold and trade the shares on the SGX, the company added, pointing out that it has not had the opportunity to tap the HKEX for any secondary equity fundraising.

Staying listed in Hong Kong will add to costs, operational complexity and the time spent on regulatory obligations, LHN noted.

The proposed delisting is still at a preliminary stage and will require the approval of LHN shareholders at an extraordinary general meeting.

If the delisting goes through, investors can deposit their shares with the Central Depository in Singapore, after which the shares will trade on the SGX.

LHN closed at S$0.715 on Friday on the SGX, down 0.7 per cent or S$0.005.