Taipei, Sept. 15 (CNA) Super Group Ltd., a Singapore-listed instant coffee supplier, is expected to delist its Taiwan depositary receipts (TDRs) in early November due to an insufficient amount in circulation on the Taiwan Stock Exchange (TWSE), according to the exchange.
The TWSE said Friday since March 14, the amount of Super Group's TDRs circulated on the main board had fallen below 10 million units for three months so that the company failed to meet the minimum requirement under the local securities listing rules. This prompted the security to face a delisting.
The exchange said it asked Super Group June 14 to issue more TDRs to boost circulation, but the company filed a statement with the TWSE Sept. 13 saying it decided not to raise the number of its TDRs.
As a result, the TWSE said that Super Group will have to take its TDRs private and the delisting is expected in early November.
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.
The food maker will become the third TDR issuer on the TWSE to delist its security so far this year, the exchange said.
Super Group, the largest instant coffee producer in Southeast Asia, issued 40 million TDRs and listed the security on the main board 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 here, the exchange said.
Super Group said 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 TDR holders who do not plan to sell the security on the local main board ahead of the delisting will be able to convert their holdings into the company's common shares before deciding to sell the shares and continue to keep them.
Super Group's TDRs closed unchanged at NT$24.20 on the TWSE Friday.
(By Tien Yu-pin and Frances Huang)