SINGAPORE (Feb 5): There is just no pleasing some investors. Shares in China-based steelmaker Delong Holdings have enjoyed a stellar run over the past year, rising from 30 cents at the beginning of 2017 to $3.78 currently. They traded as high as $4.23 in October. Yet, a group of minority shareholders has bemoaned Delong’s market valuation versus those of other steel producers in the region, and demanded that the company do something about it.

According to Delong, the group of minority shareholders wrote a letter to the company on Nov 8, 2017, outlining its grievances. Delong did not make the letter public or reveal the identity of the shareholders. However, portions of the letter were reproduced when the company responded to the points raised in a filing on Dec 12.

Among other things, the minority shareholders demanded that Delong maintain its focus on producing steel in China, expand its free float by splitting its shares, come up with a formal dividend policy and raise its profile with institutional investors. “The steep discount of Delong’s market valuation speaks volumes about what the directors should be doing in regard to preserving and enhancing shareholder value. In our view, the board of directors owes shareholders a full and frank explanation,” the minority investors said in the letter.

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