NZX to cancel Insured Group listing over repeated rule breaking

Friday 28th February 2014 1 Comment

NZX, New Zealand's stock exchange operator, will de-list Insured Group, which last traded in April, after repeatedly failing to comply with listing rules.

Insured Group will officially be de-listed at the close of trading on March 7, after using the shell of Lombard Group, the parent of failed lender Lombard Finance & Investments, for a backdoor listing on the exchange in 2010.

Trading in the shares has been suspended since October after the group failed to file an annual report. The shares last traded on April 26 at 1.5 cents, valuing the company at $325,000.

NZX said it will exercise "its discretion" and cancel Insured Group's listing after "recurring failure to comply with the NZX Main Board Listing Rules".

Insured Group has been tardy in filing its annual report every year since listing, excluding 2010 when the accounts reflected the Lombard business prior to the takeover.

In 2012 the company said it would de-list from the NZX in a failed attempt to join the Australian Stock Exchange with the expectation of lower ASX compliance fees and to raise A$2.25 million in capital. The company withdrew its ASX prospectus and returned trading on NZX.

Insured Group wasn't immediately available for comment.

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Comments from our readers

On 28 February 2014 at 1:39 pm Neil said:

A little like its predecessor which gave rise to its back door listing. I would call the Insured Group the biggest dog of the NZX but it deserves a title far worse. The only piece of amazement is how the NZX tolerated this non-performer, non-complier, for so long.