SINGAPORE - Hong Kong's stock exchange has rejected Catalist-listed CNMC Goldmine's application for a dual listing on its mainboard, citing CNMC's inability to meet the minimum market capitalisation and create liquidity for the company's shares in Hong Kong.
According to the gold miner's Singapore Exchange filing on Monday (Dec 24), the Stock Exchange of Hong Kong's (SEHK) listing committee noted that CNMC's current market capitalisation is less than the minimum market capitalisation requirement of HK$500 million (S$87.7 million) under its mainboard listing rules.
SEHK noted that as at Dec 14, CNMC's closing price was $0.198, with a market capitalisation of $80.7 million (about HK$458 million). Based on this price, the company's market capitalisation, taking in account the proposed share offer of up to 18,000,000 shares, will only be about HK$480 million.
In addition, CNMC's share price has been declining, noted SEHK.
Finally, the listing committee concluded that "it was not shown through the application" that CNMC's proposed dual listing would be able to create "meaningful liquidity" for the company's shares in Hong Kong.
CNMC's board said that it has accepted the outcome and will re-evaluate the company's plans for the proposed dual listing.