Alibaba’s film production subsidiary, Alibaba Pictures Group Limited (HK: 1060), announced on Thursday a voluntary delisting from the main board of the Singapore Exchange Securities Trading Limited (SGX), according to a filing made with the HKSE.
The firm announced that it will maintain its shares on the Stock Exchange of Hong Kong (HKSE), as it is “more geographically aligned with the company’s business operations.”
Alibaba Pictures listed other reasons for the delisting. It said that maintaining a single primary listing would allow the firm to focus efforts and resources. Additionally, the delisting would lower the cost of the administrative overhead and compliance obligations associated with SGX’s requirements.
Finally, Alibaba Pictures mentioned that the current dual-listing situation lacks synergy due to the low trading volume on SGX, when compared to the HKSE.
Alibaba Pictures was founded in 2014 and went public through its acquisition of ChinaVision Media Group. Following the news, its stock price jumped 9% to HKD 1.09 (USD 0.14) as of press time. However, still lower than the HKD 1.47 registered in January, as the film industry is still feeling the impact of the COVID-19 outbreak.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.
