Ecopetrol’s (BVC:ECOPETROL NYSE:EC TSX:ECP) board of directors has decided to delist the Ecopetrol ADRs (Depositary Receipts) from the Toronto Stock Exchange, pursuant to section 720 of the TSX Companies’ Manual. The decision was based, according to a statement put out this evening by Ecopetrol, due to the low trading volume of Ecopetrol ADRs in Canada, and the existence of a liquid market for Ecopetrol shares in the New York Stock Exchange, as well as BVC, the Colombian stock exchange.
The Colombian state controlled oil company also cited the time and effort necessary by the company to comply with the Toronto exchange’s listing requirements. The delisting will take effect March 2. After that time, Ecopetrol securities will continue to trade as before on the NYSE and BVC in the US and Colombia, respectively.
Ecopetrol is Colombia’s largest company and accounts for 60% of Colombia’s petroleum production. As one of the 40 largest oil companies globally, the national government of Colombia is the majority shareholder, but a minority of shares actively trade on the private capital markets. In addition to Colombian production, Ecopetrol is active in petroleum exploration and production in Brasil, Peru, and the Gulf of Mexico in the United States.