Singapore-based Super Group Ltd (超級集團), the largest instant coffee producer in Southeast Asia, is expected to delist its Taiwan depositary receipts (TDRs) in early November because of insufficient circulation on the Taiwan Stock Exchange (TWSE), the exchange said.
The food maker will become the third TDR issuer on the main bourse to stop trading its shares this year, after TWSE delisted Japanese memorychip maker Elpida Memory Inc’s TDRs on March 28 and Mustek Ltd (萬宇科技), the largest supplier of computer products in southern Africa, on Aug. 28.
Super Group faces delisting because the amount of its TDRs circulated on the main bourse has fallen below the minimum requirement of 10 million units for three months since March 14, the TWSE said in a statement on Thursday.
The exchange said the insufficient amount in circulation of Super Group’s TDRs was largely the result of many investors converting their depositaries for the company’s common shares.
On June 14, TWSE asked Super Group to issue more TDRs to boost circulation and meet Taiwan’s securities listing rules, but the Singaporean company filed a statement with the exchange regulator on Thursday saying that it decided not to raise the number of its TDRs.
As a result, TWSE said Super Group would have to make its TDRs private and the delisting is expected in early November.
Super Group, the largest instant coffee producer in Southeast Asia, issued 40 million TDRs and listed the shares on Sept. 9, 2010, to raise about NT$560 million (US$18.98 million) in funds for business expansion.
Each of its TRDs represents 0.5 common shares of the company, which has been listed on the Singapore stock exchange’s main board since 1998.
On the day of the debut on the TWSE, Super Group’s TDRs rose almost 7 percent as local investors rushed to take advantage of its low valuation based on its issue price of NT$14.
After its listing on the TWSE, Super Group has issued NT$1.33 in cash dividend for every TDR to its investors in Taiwan, the exchange said.
Super Group said that despite the decision to delist its TDRs, its shares are still listed on the Singapore stock exchange, and there are no worries about the status of its Singapore listing.
The TWSE said investors who do not plan to sell the TDRs ahead of the delisting will be able to convert their holdings into the company’s common shares. Super Group’s TDRs closed unchanged at NT$24.20 on the TWSE on Friday.