Puxin Limited Trading Suspended as NYSE Initiates Delisting Process

The New York Stock Exchange has taken decisive action regarding Puxin Limited (ticker: NEW), immediately suspending all trading activity for the company’s American Depositary Shares (ADSs), each representing 20 ordinary shares. The suspension follows a formal determination by NYSE Regulation that Puxin Limited no longer meets the Exchange’s listing standards.

What Triggered the Suspension?

The delisting chain of events was set in motion when the Grand Court of the Cayman Islands issued a winding-up order for Puxin Limited on April 29, 2022, under the Cayman Island Companies Act. This legal development prompted NYSE Regulation to assess whether the company remained suitable for continued listing. Following that assessment, NYSE Regulation concluded that it did not, triggering the immediate suspension of trading. The company’s ADSs had already been halted since May 3, 2022, but this marks a more formal step toward permanent removal from the exchange.

The Liquidation Framework and Its Constraints

The Cayman Court appointed three Joint Official Liquidators to oversee Puxin Limited’s winding-up process: Simon Richard Conway of PwC Corporate Finance & Recovery (Cayman) Limited, alongside Man Chun So and Yat Kit Jong of PricewaterhouseCoopers Limited. Their involvement introduces significant operational constraints for shareholders.

As disclosed in the company’s May 10, 2022 Form 6-K filing, any acquisition or disposal of Puxin Limited shares now requires explicit validation from the Cayman Court. Critically, no share transactions will be considered valid retroactively from April 29, 2022 onward unless the Joint Official Liquidators and the Cayman Court subsequently approve them. This restriction substantially limits shareholders’ ability to freely trade their holdings.

What Happens Next?

Puxin Limited retains the right to challenge NYSE Regulation’s decision through a formal review process before the Exchange’s Board of Directors Committee. However, regardless of any appeal outcome, NYSE will proceed with submitting an application to the Securities and Exchange Commission (SEC) to delist the company’s securities upon completion of all applicable regulatory procedures. The delisting of Puxin Limited reflects both the financial uncertainty surrounding the company’s value in liquidation and the structural impossibility of conducting normal business operations under court-ordered winding-up proceedings.