Linc Energy to exit ASX for SGX

CEO frustrated with Australia’s institutional investors.

a woman

Linc Energy (ASX: LNC) is eyeing an exit from the ASX (ASX: ASX) exchange in favour of Singapore’s SGX. According to CEO and Managing Director Peter Bond, the Australian market can’t keep up with Asian demand for oil and energy stocks, and the leader wants more from his market.

The billionaire boss has found himself increasingly frustrated with Australia’s institutional investors, who he believes are undervaluing Linc at a current market cap of $730 million.

Mr. Bond told AAP in an interview: “A country as rich as we are, the fourth to fifth largest saving nation in the world, we have literally a trillion dollars sitting in banks… but the stocks outside the top 50 to 60 aren’t getting the full benefit of superannuation in general and funds under management. I’d like to see more of that superannuation money in general funds management start to focus on our own backyard.”

With Singapore and its SGX market identified as Linc’s link to a better future, Mr. Bond is pushing hard for a switch by December. The CEO enjoys 39% voting share, making a majority 51% vote within reach for the executive and his company.

Foolish takeaway

For investors, a switch to a different stock exchange shouldn’t affect any investing theses. Just like when a company splits its stock, the fundamentals of a company remain unaltered when its listing heads to a new market. Decisions like Linc’s Queensland coal assets acquisition earlier this week are what investors should really be focusing on, as the company tweaks its own energy portfolio in an attempt to maximize profits.

While ASX hasn’t given Linc the love it feels it deserves, the market has rewarded dividend stock investors time and time again. Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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