Argent BioPharma has decided to leave the London Stock Exchange, becoming part of a trend among tech firms citing regulatory burdens and costs.
- The company plans to maintain its presence on the Australian market while removing its shares from London.
- Argent BioPharma experienced a significant drop in share value, contributing to their decision.
- Several other firms, including Just Eat Takeaway, are also delisting from London due to similar challenges.
- The broader context shows a pattern of companies finding the London listing requirements unfavorable.
Argent BioPharma, a medical technology company, recently announced its intention to delist from the London Stock Exchange. Faced with increasing regulatory obligations and financial pressures, the company will continue to trade in Australia, seeking to streamline operations and improve administrative efficiency.
The decision to exit the London market comes after a review of the costs and requirements of maintaining listings both in London and in Sydney. The company’s share value has plummeted, debuting at 4950p in 2021 and falling to just 9p. This dramatic decline has raised concerns about the feasibility of keeping a dual listing.
In the fiscal year ending June 2023, Argent BioPharma reported losses exceeding £4 million against minimal revenue of £120,000. This financial strain is leading the company to focus its efforts solely on the Australian market, aiming for a more simplified and economically viable operation.
Argent BioPharma’s move aligns with a broader trend where companies are reevaluating the benefits of trading on the London Stock Exchange. Notably, this week also saw Just Eat Takeaway, another major player, announce plans to end its trading on the London market by Christmas Eve. The company’s primary listing will remain on Euronext Amsterdam.
Just Eat Takeaway has emphasized issues similar to Argent BioPharma’s, citing low liquidity and high administrative costs that overshadow the benefits of maintaining a secondary listing in London. The London Exchange is witnessing a domino effect, with firms like OTAQ and several from the Alternative Investment Market following suit.
The trend of companies delisting from the London Stock Exchange could signal a shifting preference for more efficient and cost-effective markets.
