A second Hong Kong stock heads for the exit this week as trading in Coach shares slow to a trickle
Coach, the New York luxury brand, will remove its shares from the Hong Kong bourse five years after listing them, as transactions slowed to a trickle
New York luxury brand Coach has applied to delist from Hong Kong, reflecting the second international company this week to announce plans to exit from the local market owing to thin trading.
Swiss commodity trading and mining company Glencore on Tuesday said it will delist from the local stock exchange from January 31.
Both Coach and Glencore launched a secondary listing in Hong Kong in 2011, after the Hong Kong stock exchange ramped up its marketing campaign to promote the value of an expanded equity presence to multinational companies. The exits suggest the promised benefits of the secondary listing failed to materialise, hindering the stock market’s effort to become more international.
Coach has applied to the stock exchange to withdraw the listing of its depositary receipts in Hong Kong, but has not specified a timeline for the exit, according to a stock exchange filing in Hong Kong on Wednesday morning before the market open.
“Due to trading volume and to focus its resources on the company’s primary listing on the New York Stock Exchange, the company intends to withdraw its listing from the main board of the Stock Exchange of Hong Kong,” Coach said in the statement.
Coach also announced it changed its company name to Tapestry effective from Tuesday, October 31. The stock changed hands on 21 trading days in the last 12 months, according to the exchange’s trading data. The company has not seen any share trading since the delisting announcement. The stock closed unchanged on Tuesday at HK$30 apiece.
The design house has a primary listing on the New York Stock Exchange. The secondary Hong Kong listing, via depository receipts, was completed on December 1, 2011.
At the time of the Hong Kong debut, then chairman and chief executive Lew Frankfort said the listing would form part of Coach’s expansion plan in the mainland, which he described as the company’s “single largest geographic growth opportunity”.
Glencore said on Tuesday it will cancel its secondary listing in Hong Kong from the end of January owing to a lack of interest from investors. Its shares will continue to trade in London and Johannesburg.
Glencore said just 0.3 per cent of the company’s total issued share capital is held in Hong Kong, as most investors prefer to trade the shares in London.