NEW ZEALAND Oil & Gas (NZOG) has moved to de-list from the Australian Securities Exchange (ASX), citing poor liquidity and low trading volumes.
The company will retain its listing on the New Zealand Stock Exchange (NZX), with any shareholdings remaining on its Australian register being transferred to New Zealand after trade in the company’s shares is suspended.
NZOG chairman Rodger Finlay said it found the New Zealand Stock Exchange to be a reliable, well-regulated platform with ample liquidity for its shareholders.
“Delisting is also consistent with other recently announced initiatives to reduce costs.
The Board considers that the cost of continued listing on ASX outweighs the benefits,” he said.
Furthermore, NZOG said the average daily volume of trades on the ASX was 13,849 from 2 March 2015 to 29 February 2016 – compared to an average of 245,935 on the NZX over the same period.
Company stock did not trade at all on 98 of these days on the ASX, compared to 9 days on the NZX.
NZOG expects to suspend trading of its shares on the ASX on 24 May, with the stock to be removed from the official list by 31 May, the company said in a later announcement.