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Visioneering Technologies (ASX:VTI) has become the latest to step down before the footlamps, announcing its voluntary delisting on Tuesday.
The US-based eyecare company has offered Chess Depository Interests (CDIs) on the ASX for years where one CDI is equivalent to one share, but after a seven year run, the company has decided to delist.
The first and foremost source of ire for management has been what Visioneering considers potential unfair valuing of the company.
“Since the Company’s initial public offering (IPO) and listing in March 2017, the board has observed ongoing fluctuations in the quoted price of the company’s CDIs and noted that the value attributed to a CDI has been largely independent of news flows, even when positive news has been released,” Visioneering wrote on Tuesday.
“This has caused the board to question whether the market is fairly valuing the company.”
A lack of liquidity has also been been underscored as a key reason driving the decision to de-list.
At 10.15am Sydney time on Tuesday, total share turnover in Visioneering reflected $0 – and a four week average share turnover of only 7,623 units. (In the same breath, year-to-date returns are down -46%.)
The company threw an investor presentation in July, and then did it again in October.
“Notwithstanding the company’s ASX listing, trading in the company’s CDIs has been relatively illiquid which has contributed to high volatility in the company’s CDI price,” the company wrote.
“As at September 20, 2024, 604 securityholders held “unmarketable” holdings parcels of A$500 or less (representing 66.67% of securityholders).”
The company hinted it may turn to private markets for further raising, presumably, Visioneering is to recede back to its U.S. digs. Though, there was one caveat.
“While the board believes the company may have better access to potential capital and on more favourable terms than would otherwise be available if the Company was to remain listed on the ASX, there is no certainty that the company will in fact obtain better access to capital and/or on more favourable terms post-delisting,” VTI wrote.
VTI last traded at 13.5cps.
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