OTAQ, a maritime technology manufacturer, is looking to delist from the Aquis Exchange, citing more disadvantages than advantages.
- The decision follows concerns over share price volatility, limited investor access, and lack of operational flexibility.
- The regulatory and financial demands of Aquis are seen as burdensome, with projected savings of up to £1.2m in annual costs.
- Shareholder approval will be sought at the upcoming general meeting scheduled for the 10th of December.
- This move is part of a broader trend as many firms have delisted from London’s exchanges recently.
OTAQ, a Lancaster-based maritime technology manufacturer, has announced its intention to withdraw its shares from the Aquis Exchange. The company has raised concerns that remaining on the exchange has become more harmful than beneficial. Key issues highlighted by OTAQ include significant share price volatility, constrained access to potential investors, and a lack of flexibility in operations. These challenges have led the board to determine that continuing to trade on the AQSE Growth Market is no longer suitable for the company or its shareholders.
The decision to delist OTAQ shares is part of a wider trend observed over the past year. Similar choices have been made by other technology firms, such as Quantum Exponential and C4X Discovery. According to UHY’s analysis, 92 companies have delisted from the Alternative Investment Market (AIM) in the last year alone. This reduction reflects a 23-year low, leaving the market with 695 listings.
A major factor driving OTAQ’s decision is the excessive costs and time commitments associated with maintaining its listing on Aquis. The board described these burdens as ‘disproportionate’ to the benefits gained, particularly given the inconsistent liquidity of its shares. By delisting, OTAQ anticipates reducing regulatory expenses by approximately £1.2 million annually.
The proposal for delisting will be presented to shareholders at the upcoming general meeting slated for the 10th of December. Should the shareholders vote in favour, OTAQ aims to complete the delisting process by the end of the month.
This development occurs against a backdrop of significant market changes, such as recent pension reform plans announced by Chancellor Rachel Reeves. These reforms are expected to potentially invigorate the London Stock Market and drive increased investment within the technology sector. However, OTAQ’s financial performance has been under strain, with a reported operating cash flow drop from a £5.2 million profit in 2022 to a loss of £389,000 for the year ending in December 2023.
OTAQ’s decision to pursue delisting from the Aquis Exchange highlights the growing pressures small to medium-sized firms face on UK public markets today.
