First Caribbean Bank has left it to the Jamaica Stock Exchange to determine if they will delist the shares, according to an advert put out by the Bank, which is listed on various exchanges within the region.
The JSE advised them that the number of shares in the public hands is less than 20 percent as is the requirement. In addition, the level of trading is below the threshold desirable, being less than 2 percent average over 36 months, prior to the making notice to the Bank. As a result, the advert also indicated that the company was in breach of section 402b (1)(b) of the JSE rules.
After careful review of the matter, the bank has determined that it will not be feasible for either the proportion of the non-majority held shares or the average total traded volume to be raised to the minimum required in the foreseeable future.
The bank has decided that it will accept that it will be delisted by the JSE and has invited the JSE Board to exercise its discretion under rule 411a to delist the bank at its February meeting.
The bank is the largest holding by market share on the exchange and this will be the second large corporation taken off the exchange this year, if in fact, the JSE moves to delist to shares.
Trinidad Guardian Holdings opted not to remain listed on the JSE at the start of 2014 based on the low level of trading in its stock. The JSE went public last year against the background of lower income and profits than the year before and these moves will mean reduced income for the JSE and most likely worsen the loss position they suffered in the last three quarters of 2013.
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