G3 Group to de-list from NXT next week
NXT-listed G3 Group will quit the small-cap index next week, just two years after joining the market for minnows in a compliance listing.
In June, Auckland-based G3 today said its board had received a proposal from majority shareholder the Christian Family Trust to delist from NXT, and it was considering the proposal before making a recommendation to other shareholders.
Today, G3 said that it got shareholder approval to de-list at its annual meeting and NZX regulation has approved its application. Its shares will stop trading on Oct. 18 and will be suspended at close of business that day, with the shares de-listed on Oct. 20.
"As indicated in its notice of annual meeting, G3 Group's shares have only occasionally been traded through the NXT market (with the last trade on Feb. 1, 2017), so cessation of listing and quotation is not expected to have any material impact on the tradability of G3 Group shares," it said.
The company will try to match interested buyers and sellers of its shares after it de-lists, and will undertake a share buyback of small independent shareholdings, it said.
The mail operations and document management firm was the first company on NZX's NXT market, listing its 53.8 million shares at 75 cents apiece. The shares last traded at 64 cents.
NXT was to replace the NZ Alternative Market (NZAX) for smaller firms, but has struggled to attract small and medium-sized businesses. Late last month, the Wellington-based stock market operator released a discussion document with its preferred route of action in changing the listing rules, which would drop the small-cap NZAX and NXT markets and introduce more flexibility around disclosure on the main board.
Submissions on the NZX document are due by the close of business on Nov. 17 with a second round of consultation set for April next year and the new regime in place in the fourth quarter of 2018.