Fintech Chain Limited has applied to delist from the ASX, citing low valuation, poor liquidity, and high costs, aiming to unlock growth capital in China and the US.
- Voluntary delisting proposal subject to shareholder approval
- Low ASX trading price and liquidity cited as key concerns
- High annual listing costs and limited capital raising options
- Post-delisting trading to shift to off-market private transactions under Hong Kong law
- Plans to pursue growth funding in Chinese and US markets
Strategic Shift Away from ASX
Fintech Chain Limited (ASX: FTC) has formally announced its intention to voluntarily delist from the Australian Securities Exchange. The move, which requires shareholder approval at a general meeting scheduled for late June, reflects a strategic pivot driven by persistent challenges in valuation, liquidity, and capital access on the ASX.
The company’s board highlighted that the trading price of its CHESS Depository Interests (CDIs) has languished at around A$0.004 per CDI, a level they argue undervalues the company compared to peers both listed and unlisted. This undervaluation, coupled with low trading volumes, only 28 trading days in the first four months of 2025, has contributed to a stagnant market sentiment, particularly towards Chinese-listed stocks on the ASX.
Costly Listing with Limited Benefits
Remaining listed on the ASX has come at a significant cost. For the financial year ending March 2025, Fintech Chain incurred approximately A$386,000 in administrative, compliance, and direct costs. The company estimates that the delisting process itself will cost around A$420,000, covering advisory and legal fees. Despite these expenses, the ASX listing has provided limited access to growth capital, undermining one of the primary reasons for maintaining a public listing.
In addition, the board noted that raising capital on the ASX would impose dilution risks on existing shareholders and that alternative financing avenues, particularly debt financing, have been pursued with some success but remain constrained by the company’s ASX market capitalization and negative sentiment towards Chinese stocks.
Post-Delisting Outlook and Shareholder Options
Should shareholders approve the delisting, Fintech Chain’s securities will cease trading on the ASX by the end of July 2025. Trading will transition to off-market private transactions governed by Hong Kong law, where the company is incorporated. Shareholders holding CDIs will have options to sell on the ASX before suspension, convert CDIs into underlying shares, or allow automatic conversion post-delisting.
The company anticipates that delisting will reduce regulatory burdens and compliance costs, allowing it to focus on growth opportunities in the Chinese and Southeast Asian digital economies. Plans are underway to explore funding options in the Chinese and US domestic markets later this year, aiming to sustain business momentum and enhance shareholder value.
Regulatory and Legal Considerations
Following delisting, Fintech Chain will no longer be subject to ASX continuous disclosure obligations but will comply with Hong Kong’s Companies Ordinance filing requirements. Shareholders retain rights under the company’s Articles of Association, including voting and dividend entitlements. The announcement also outlines legal remedies available to shareholders who may find the delisting prejudicial, including court applications under Hong Kong law.
This move underscores the challenges faced by Chinese-related companies listed on foreign exchanges amid shifting market sentiments and regulatory landscapes. Fintech Chain’s decision to delist from the ASX and refocus on Asian and US capital markets may set a precedent for similar firms navigating these complexities.
Bottom Line?
Fintech Chain’s delisting marks a critical juncture, testing whether shifting away from the ASX can unlock the growth capital it has long sought.
Questions in the middle?
- Will shareholder approval be secured given the significant change in trading and liquidity?
- How effectively can Fintech Chain access Chinese and US capital markets post-delisting?
- What impact will the loss of ASX regulatory oversight have on investor confidence?