Russian e-commerce company, Ozon, has announced its intention to delist its American depositary shares (ADSs) from the Nasdaq exchange, bringing an end to its nearly three-year association. In 2020, Ozon made a successful initial public offering (IPO) that raised nearly $1 billion, contributing to a surge in IPOs among Russian firms. However, trading of Ozon’s securities on Nasdaq was suspended following the deployment of Russian troops to Ukraine in February 2022, accompanying a halt in listings of Russian companies on the London Stock Exchange. Despite multiple unsuccessful appeals against delisting, Ozon has decided to independently delist its securities, citing the exhaustion of all appeal options and the goal of reducing costs associated with meeting US Securities and Exchange Commission reporting standards. The delisting is anticipated to have no impact on the company’s operations.
Ozon intends to file for voluntary delisting by October 30. It should be noted that this decision will not affect the company’s day-to-day functioning. In a bid to increase liquidity, particularly for international investors looking to trade Ozon’s securities, the company began trading its ADSs on Kazakhstan’s Astana International Exchange (AIX) in late July. This move to delist from Nasdaq is a strategic response to the suspension of trading and the ongoing uncertainty surrounding the resumption of Ozon’s ADSs on the US exchange. By transitioning to a different exchange, Ozon aims to mitigate the expenses associated with meeting US regulatory requirements. Despite the delisting, the company remains focused on its operations and is taking steps to enhance liquidity through alternative channels for investors.
In conclusion, Ozon’s decision to delist its ADSs from Nasdaq comes after trading was suspended due to the geopolitical tensions between Russia and Ukraine. Despite unsuccessful appeals, the company has chosen to voluntarily delist its securities, primarily driven by a desire to reduce costs linked to adhering to stringent US reporting standards. However, Ozon’s day-to-day operations are expected to remain unaffected, and the company has already diversified its trading options by listing its ADSs on the Astana International Exchange. This strategic move demonstrates Ozon’s commitment to maintaining investor interest and accessibility while exploring alternative avenues that offer potential liquidity benefits.
