LHN Limited announced, on July 4, that it is proposing to voluntarily delist from the Stock Exchange of Hong Kong (HKEX) due to cost and utility reasons.
The company’s board of directors unanimously approved the proposal on June 30. LHN’s shareholders will have to approve the delisting via an ordinary resolution at an extraordinary general meeting (EGM).
The HKEX will also have to approve the proposed delisting and the company has to give its shareholders at least three months’ notice of the proposed delisting from the date of the shareholders’ approval, if so.
An EGM will be convened at an appropriate time to seek LHN’s shareholders’ approval for the proposed delisting.
After the proposed delisting, shareholders will have the option of either holding their shares, which will not be traded on the HKEX, or deposit their shares with the Central Depository (CDP), after which their shares can be listed and traded on the Singapore Exchange (SGX).
LHN is currently on the Mainboard of the SGX and has been there since December 2023. The company was formerly listed on SGX’s Catalist board on April 2015. LHN was listed on the Mainboard of the HKEX on December 2017.
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The proposed delisting comes after the company has seen low trading volumes. Over the 12 month period since listing on the HKEX, LHN’s average trading volume of shares on the Hong Kong bourse was 2.12 million shares, representing 0.31% of the total trading volume on both the HKEX and SGX for the same period.
This has reduced to an average trading volume of 64,366 shares, representing 0.02% of the total trading volume on HKEX and SGX from July 1, 2024, to June 30.
“This showed that there has been little demand from investors in Hong Kong to drive liquidity in the shares in HKEX as evidenced by the limited number of shareholders and low trading volume in Hong Kong,” says LHN in its July 4 statement.
“This reflects investors’ preference to hold and trade the shares on its home exchange, the SGX-ST,” it adds. “As such, the company has not had the appropriate opportunity to take advantage of HKEX platform for any secondary equity fund raising activities in Hong Kong.”
Maintaining the listing of its Hong Kong shares has also incurred and continues to incur additional listing and associated costs, LHN continues.
Shares in LHN closed 0.5 cents lower or 0.69% down at 71.5 cents on SGX. The company’s shares closed at HK$4.02 (65 cents) on the HKEX on July 4.
