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KUALA LUMPUR: Lion Industries Corp Bhd
’s American Depositary Receipt (ADR) programme, which allowed its shares to be traded on the US over-the-counter (OTC) market, has been terminated due to lack of investor interest.
The company, which is 37.4% owned by Tan Sri William Cheng, told Bursa Malaysia that the Level 1 Sponsored ADR programme, registered on Dec 30, 1992, had been discontinued following The Bank of New York’s resignation as the depositary bank last Friday.
Under the ADR programme, up to a maximum of 5% of the total issued and paid-up capital of Lion Industries could be traded in the OTC market in the US in the ratio of one ADR for every one ordinary RM1 share.
“Due to the lack of investor interest in the ADR programme, none of the ordinary shares of the company was deposited pursuant to the ADR programme. Hence, the ADR programme did not serve its initial objective in attracting foreign investors in the US OTC market,” Lion Industries said.
The termination, it added, did not have any impact on the earnings per share and net assets per share of Lion Industries group for the financial year ending June 30, 2017.
Lion Industries is involved in steel product manufacturing (hot briquetted iron and long products), property development and trading building materials, among otheras.
Year-to-date, Lion Industries share price has gained about 52%, the best performance among the listed and just-delisted members of the Lion group (Lion Corp was delisted on Oct 12). The counter closed half a sen lower at 44 sen with 1.72 million shares changing hands.
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