NEW YORK - The New York Stock Exchange (NYSE) has initiated proceedings to delist the American Depositary Shares of Leju Holdings Limited, a real estate services company, due to non-compliance with market capitalization and shareholders' equity requirements. Trading of the company's shares, under the ticker symbol LEJU, was suspended immediately.
Leju Holdings has been operating below the NYSE's compliance threshold, as outlined in Section 802.01B of the NYSE Listed Company Manual. The company's total market capitalization fell below $50 million over a 30 trading-day period, and its stockholders' equity also dropped beneath the $50 million mark. The decision to delist was made following the company's submission of a business plan that failed to show it could meet the NYSE's continued listing standards within the mandated 18-month timeframe, according to Section 802.03 of the NYSE Listed Company Manual.
The company retains the right to request a review of this decision by a Committee of the Board of Directors of the NYSE. If the delisting proceeds after all procedures are followed, including any appeal by the company, the NYSE will file an application with the Securities and Exchange Commission to formally remove the company's shares from the exchange.
InvestingPro Insights
In light of the recent NYSE delisting proceedings against Leju Holdings Limited, investors may find the following insights from InvestingPro particularly pertinent. Despite the challenging circumstances, Leju Holdings maintains a stronger liquidity position than might be expected, holding more cash than debt on its balance sheet. This can be a key factor for companies in weathering financial uncertainties and potentially restructuring their operations.
Additionally, analysts following the company anticipate sales growth in the current year. This projection could suggest underlying business potential that may not be immediately apparent from the delisting news. However, it is important to note that Leju Holdings has not been profitable over the last twelve months, which contributes to the concerns leading to its delisting.
InvestingPro Data paints a detailed picture of Leju Holdings' financial status. The company's market capitalization stands at a modest 15.16 million USD, and it is trading at a low Price/Book ratio of 0.44 as of the last twelve months ending Q2 2023. This ratio, often used to compare a firm's market value to its book value, could indicate that the stock is undervalued. The revenue for the same period was 332.27 million USD, although it experienced a decline of 17.44% from the previous year.
For investors and analysts seeking more comprehensive analysis, there are additional InvestingPro Tips available for Leju Holdings, which can be accessed at Investing.com/pro/LEJU. These tips delve deeper into the company's valuation multiples, industry standing, and historical stock performance. Moreover, users can take advantage of an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 9 InvestingPro Tips for Leju Holdings.
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