CENTURION Corporation, which owns, develops and manages purpose-built worker and student accommodation, has applied to voluntarily withdraw its shares listing on the Hong Kong stock exchange (HKEX) “for reasons of cost and utility”.

In a bourse filing on Monday (Jun 5), the company, which is listed on the Singapore Exchange’s mainboard, said the volume of trading since its 2017 share offer on the HKEX has been “very limited”.

The company also has not had the appropriate opportunity to take advantage of HKEX platform for secondary equity fund-raising activities in Hong Kong, it noted.

However, maintaining the listing of the shares there requires additional ongoing regulatory compliance obligations and such requirements involve additional costs and administrative burden, it said.

Notwithstanding the proposed delisting in Hong Kong, Centurion explicitly stated its intention to retain the existing primary listing of its shares on the Singapore Exchange following the proposed delisting.

As a next step, an extraordinary general meeting will be called to seek shareholders’ approval for the proposed delisting, it said.

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Centurion, meanwhile, noted that its directors do not expect that the proposal’s implementation will cause a diminution in the net asset value or earnings per share of the company; neither would it adversely affect the business of the group.

It reiterated that it would, rather, enable the company to effect cost savings.

Shares of the company closed flat at S$0.35 before the announcement.