Oilfield services behemoth Schlumberger plans to delist from the London Stock Exchange citing low trading volumes.
The company said Friday its Board of Directors had in January 2020 approved the cancellation of the listing of the company's common stock on the standard segment of the Official List of the London Stock Exchange and the cancellation of admission to trading of such shares on the main market of the LSE.
"Consequently, the company intends to apply to the UK Financial Conduct Authority and the LSE to request the Cancellation...It is anticipated that the Cancellation will take effect on or about 27 March 2020." Schlumberger said.
Schlumberger explained the reason behind the cancellation was that only a small amount of trading in its was conducted on the LSE.
"Taking into account these low trading volumes and the ongoing regulatory compliance and administrative costs the Company incurs annually as a result of its London listing, the Board determined that there is no significant benefit to the Company in maintaining the listing," Schlumberger said.
"The Company does not believe that the Cancellation will adversely affect its shareholders since the company's common shares will continue to be listed on the New York Stock Exchange (the "NYSE") as well as Paris Euronext, and will continue to be tradeable on various other venues," Schlumberger added.
Further, Schlumberger said that given the company had its primary listing and main trading platform on the NYSE, the continued listing on the LSE would not afford the company a significant advantage in terms of liquidity or additional sources of funding compared to the ongoing costs of maintaining the listing.