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Courage Marine switching to secondary listing in Singapore

Courage Marine switching to secondary listing in Singapore
Dry bulk shipowner Courage Marine has proposed to convert its listing status on the main board of Singapore Exchange (SGX) from a primary listing to a secondary listing, while maintaining its primary listing status on the Hong Kong Stock Exchange (HKSE).

Courage Marine decided on this proposal in view of high compliance costs, trading volume, and its business and shareholders profile.

Due to Courage Marine’s dual primary listing on SGX and HKSE, the company is required to comply with the listing rules of both exchanges. The conversion to a secondary listing on SGX “will enable the company to substantially reduce its legal and compliance costs, as well as free up resources for other critical aspects of its business, growth and operations”, Courage Marine stated.

The company noted that for the last three financial years, the total and average daily trading volumes of its shares on SGX has been consistently and significantly lower than that on HKSE, pointing to a lesser need to maintain the primary listing in Singapore.

In addition, Courage Marine stated that its principal place of business is in Hong Kong, and the listing conversion would help reflect the geographical business profile of the company.

The company also has an issued share capital comprising 127,058,928 ordinary shares, with the bulk of the shares of approximately 89.97% being registered under the company’s share registrar in Hong Kong for trading, leaving only 10.03% for trading in Singapore.

Courage Marine said it has received an in-principle approval from SGX for the listing conversion.

“The conversion is expected to streamline the company’s compliance obligations, create efficiencies in resources, allow the company greater flexibility in its activities, and better reflect the shareholder profile and geographic business profile of the company, without any adverse effect on shareholders,” Courage Marine said.

In the first quarter, Courage Marine reported a loss of $1.49m amid a difficult dry bulk shipping market.

In December 2015, the company announced moves to shut down its operations and office in Taiwan and the representative office in Shanghai as part of efforts to cut costs. It also divested two subsidiaries in Panama and one in Taiwan.