Orange S.A. to Delist American Depositary Shares from NYSE

Orange S.A., a major French telecom, announces its decision to voluntarily delist its American Depositary Shares from the NYSE, aiming for improved internal efficiency despite maintaining its presence in the U.S. through an ADR program.

Date: 25-09-2024

AI Rating: 5

Orange S.A. has decided to voluntarily delist its American Depositary Shares (ADS) from the New York Stock Exchange (NYSE) and with the U.S. Securities and Exchange Commission (SEC). This move is attributed to the significant financial and administrative burdens associated with maintaining the NYSE listing and SEC registration.

The company's aim is to enhance internal simplification and efficiency, which may reflect operational adjustments rather than a sign of financial distress. Notably, the delisting process will commence with a filing to the SEC in the fourth quarter, and it is stated that this will take effect ten days after the application is submitted.

Importantly, the report mentions that the decision is expected to have no impact on Orange's clients and partners or its commercial presence in the U.S. This suggests stability in its operations and client relations.

Furthermore, post-delisting, Orange plans to maintain its American Depositary Receipt (ADR) program. This allows investors to retain their ADRs and still trade them on the U.S. Over-The-Counter (OTC) market. This indicates that while the company is stepping back from the NYSE, it is still facilitating a way for U.S. investors to engage with their stock.

While the delisting may suggest a reduction in compliance burdens, it may also raise questions among investors about the company's commitment to maintaining a strong visibility in U.S. capital markets. Keeping a functional ADR program allows them to mitigate some concerns in this regard.

Stocks: ORAN