Singtel seeks delisting from ASX on back of very low trading volume

Institutional investors prefer to trade on the SGX.

Singtel today revealed that it is has formally requested approval to delist its securities from ASX on back of low trading volume, liquidity and market demand for Singtel CHESS Depositary Interests.

Each Singtel CDI represents a beneficial interest in the equivalent of one Singtel share listed on the SGX. Singtel shares will continue to be listed on the SGX and trading on the SGX will continue during and after the ASX delisting process.

Singtel was admitted to the official list of the ASX in September 2001 in connection with its acquisition of Optus.

Singtel stated that it has chosen to delist from the ASX because of ‘very low’ daily trading volumes and liquidity of its CDIs on the ASX.

“During the twelve months to 31 March 2015, the number of Singtel CDIs traded on the ASX accounted for only 6% of all Singtel shares traded. This reflects institutional investors’ preference to hold and trade Singtel shares on its home exchange, the SGX,” stated Singtel.

Singtel also reported that in recent years, the number of Singtel CDIs on issue has also declined significantly, representing only 0.86% of Singtel’s share capital as at 31 March 2015.

“With little demand to drive liquidity in its CDIs, Singtel's weighting in the S&P/ASX200 index has been reduced to approximately 0.03% as at 31 March 2015. This further diminishes the broader market appeal of Singtel CDIs. There is increased likelihood that Singtel’s index weighting will be further reduced over time,” Singtel noted.