CoAssets, a Singapore based Fintech that listed its shares on the Australian Securities Exchange in 2016, has announced the delisting of its shares.
According to a release by the company, CoAssets requested a voluntary delisting for the following reasons:
- Low shareholder numbers – The Company has less than 400 shareholders, of which approximately 124 or 33.3% hold unmarketable parcels (i.e. a shareholding of $500 or less).
- Low levels of trading liquidity – Trading in the Company’s shares has been limited, both in frequency and volume. The low level of liquidity has resulted in limited trading opportunities for shareholders who wish to exit their holdings.
- High ongoing costs – The Company incurs costs in excess of $750,000 per annum to maintain its ASX listing. This does not include any allocation of the cost of management’s time taken up by matters associated with being listed.
Simultaneously, the company announced Denka Wee as the new Group CEO and Chairman effective as of today (22 Jun 2020). Wee first joined CoAssets as a non-executive chairman on April 7, 2020.
Getty Goh, co-founder and former CEO has moved into a new role as Chief Corporate Officer.
Goh issued the following statement on the decision to remove its shares from the ASX:
“The CoAssets Group was listed in 2016 at a market capitalisation of more than S$60million. The last few years, the Group has been growing from strength to strength – in terms of business growth and technological capabilities. At present, CoAssets Group has financial services and money lending licenses in Singapore and Hong Kong respectively. We also have grown our financial technology capabilities that saw us providing companies with innovative solutions like incorporating block chain in their business processes. For the last financial year, prior to COVID-19, our revenue grew by more than 300% and was more than S$12.4million. Profit wise, we made more than S$1.8million – all these results is a testimony of how the CoAssets Group has grown. Unfortunately, despite our growth, our share price did not perform in accordance to our expectations. Thus, after careful consideration, the CoAssets Board had determined that there were minimal shareholder benefits from maintaining the Group’s listing on the ASX – which led to us to proceed with the voluntary delisting.”
Wee said he was excited about his new role and the company’s potential. In a symbolic gesture, Wee said he would only take a one dollar salary:
“To better drive CoAssets’ transformation efforts, I will be assuming the role of CoAssets’ Group CEO full time. To show my commitment, I will be taking a symbolic S$1 salary. I will also not be taking any incentives, bonuses, or compensations or claims for at least the next 2 years. Through my business connections with listed developers from around the region, I will be able to help CoAssets open new fronts to its business. In my capacity as Group CEO, I also hope to tap on my resources to help shareholders find a viable exit. Looking forward, I hope to keep growing the company with a view of relisting it several years down the road.”
Wee was previously the CEO for DWG, a real estate firm that is said to have invested over USD$ 1 billion in key cities around the region since 2018. Goh expressed his belief that Wee would be able to drive similar growth for CoAssets.
CoAssets started as a real estate crowdfunding platform but, over time, pivoted and moved into other Fintech related verticals. According to its webiste, CoAssets claims to be “Singapore’s and pan Asia-Pacific region’s largest digitally-enabled investor platform, offering a wide range of opportunities across different industries.”