NEW YORK - The New York Stock Exchange (NYSE) has initiated proceedings to delist the American depositary shares (ADSs) of Jianpu Technology Inc. (NYSE:JT), a move that follows the company's failure to meet the Exchange's minimum market capitalization requirement. The trading of Jianpu Technology's ADSs has been suspended with immediate effect.
The decision by NYSE Regulation is based on Section 802.01B of the NYSE's Listed Company Manual. This section mandates that listed companies must uphold an average global market capitalization of at least $15 million over a consecutive 30 trading-day period. Jianpu Technology, which has been trading under the ticker symbol JT, has fallen short of this continuous listing standard.
Jianpu Technology retains the right to request a review of this determination by a Committee of the Board of Directors of the Exchange. Should the company choose to appeal, the process will be followed as outlined by the NYSE's procedures. The NYSE plans to file an application with the Securities and Exchange Commission to delist the ADSs once all applicable procedures have been completed, including any potential appeal by Jianpu Technology.
InvestingPro Insights
As Jianpu Technology Inc. faces delisting from the NYSE, a look at the company's financial health through InvestingPro metrics reveals challenges that may have contributed to its current predicament. With a market capitalization of just $15.36 million USD, Jianpu Technology has barely met the NYSE's minimum requirement. This precarious position is reflected in the company's negative Price to Earnings (P/E) ratios, with the latest data showing a P/E ratio of -2.01 and an adjusted P/E ratio for the last twelve months as of Q3 2023 at -2.27. These figures underscore the company's struggles with profitability over the recent period.
Additionally, the company's Price to Book (P/B) ratio stands at 0.28, which according to InvestingPro Tips, indicates that the stock is trading at a low Price / Book multiple. On the flip side, another InvestingPro Tip highlights that Jianpu Technology's stock generally trades with high price volatility, which could be a concern for risk-averse investors. This is further substantiated by the significant price decline over the last year, with a 1 Year Price Total Return of -62.89%.
For those considering the broader picture, there are more InvestingPro Tips available that could provide additional insights into Jianpu Technology's performance and future outlook. Subscribers can access these tips and potentially leverage them for more informed decision-making. To enhance your investing strategy with these expert insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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