Singapore Telecommunications Limited Is Planning To Delist Itself…

Before you panic, Singapore Telecommunications Limited (SGX: Z74), the largest telecommunications outfit in Singapore, is only planning to delist its shares from the Australia Stock Exchange (ASX).

In an announcement made earlier today, the company revealed that it has submitted a request to the ASX to “remove its listed securities, in the form of CHESS Depositary Interests (CDI), from the official list of ASX.”

Many investors may have never realised that Singtel is – at the moment – a dual-listed firm. But, the company has actually been listed in Australia since 2001 after it acquired Optus, Australia’s second-largest telco.

Despite its status as one of Singapore’s largest publicly-traded companies by market capitalisation, the daily trading volume of Singtel’s shares on the ASX is very low. And that’s what has prompted Singtel to delist itself from Australia’s stock market – with the low trading volume and investor interest, it might not even be practical for Singtel to maintain a listing in Australia when speaking from a cost-perspective.

A quick check on the daily trading volumes of Singtel’s CDIs on the ASX shows that there are generally less than 1 million shares exchanging hands per day. For some perspective, it’s generally the case where more than 20 million Singtel shares are traded daily in Singapore’s stock market. That’s over 20 times the volume found in the ASX.

In any case, investors on both Singapore and Australia’s stock exchanges have little to worry about when it comes to Singtel’s shares. The company has no plans to delist its Singapore-listed shares. Meanwhile, with the ease in which investors can buy foreign shares now, Australian investors can also easily gain access to Singtel’s shares in Singapore.

There are also unlikely to be any impacts that Singtel’s delisting would have on its business.

Interestingly, Singtel’s desire to remove its CDIs from the ASX might turn out to be a slight positive for Singapore Exchange Limited (SGX: S68), the operator of Singapore’s stock exchanges. That’s because some of the trades going on with Singtel’s Australia-listed shares at the moment might end up happening in Singapore instead.

All told, investors who are interested in Singtel need not worry as they can still easily buy or sell shares of one of Singapore’s largest companies.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.