Chinese online real estate marketplace FangDD Network Group Ltd. has succeeded in preventing delisting from Nasdaq after complying with the minimum share price rule, according to the company.
In an announcement today, FangDD said it received a compliance notice from Nasdaq after meeting the minimum bid price requirement.
In January, the stock exchange notified the company that it was not in compliance because the bid price of its American depositary shares (ADS) was less than $1 for 30 consecutive business days.
“In order to regain compliance with the minimum bid price requirement, the company changed the ratio of its ADSs representing Class A ordinary shares from one ADS representing 25 Class A ordinary shares to one ADS representing 375 Class A ordinary shares. The change became effective on June 7, 2022,” said the company.
“On June 22, 2022, Nasdaq confirmed in the compliance notice that for the ten consecutive business days, from June 7 through June 21, 2022, the closing bid price of the company’s ADSs has been at $1.00 per share or greater. Accordingly, the company has regained compliance with Listing Rule 5450(a)(1), and the matter is closed.”
FanDD, listed in 2019 in an $105 million IPO, has struggled alongside the real estate market in China. The company’s revenue dropped by around 62% last year. When CEO Xi Zeng was given an additional role of chairman in May, the equity had already lost more than 90% of its share price, according to Seeking Alpha’s estimate.