Natural gas distributor Beijing Gas Blue Sky Holdings on Friday said it received approval from the Singapore Exchange for voluntary delisting of its shares from the mainboard.
Beijing Gas said it has sought the proposed delisting due to lower trading volume of the shares on the SGX, resulting in lack of liquidity of the company's shares.
The trading volume of the shares on the Stock Exchange of Hong Kong (HKSE), where it has a primary listing, significantly exceeds SGX trading volume, it said in a statement.
Moreover the number of shares listed on the SGX is small, it said.
As at the date of this announcement, the number of shares listed on the SGX is about 32.8 million, which comprises about 0.33 percent of the total issued shares of the company.
The proposed delisting will eliminate the additional administrative overhead and costs of compliance associated with such SGX requirements and allow it to streamline its compliance obligations, reduce costs, Beijing Gas said.
SGX has advised that it has no objection to Beijing Gas's proposed delisting, subject to several conditions including clear disclosure on the follow-up actions required from and the costs to be incurred by shareholders for the transition.
The proposed delisting will result in the shares being removed from the official list of the SGX. After the completion of the delisting, shares will only be traded on the HKSE.
