Allergy Therapeutics plc is looking to de-list in London – and then intends to join the public markets in Hong Kong.
The West Sussex-based MedTech, led by CEO Manuel Llobet (pictured), has maintained a London listing since 2004 but its board has complained of costs amid a 71% drop in its share price this year.
The firm, which develops allergy vaccines and immunotherapy treatments, will need 75% of its shareholder base to vote through a cancellation of its shares on the junior AIM market at its annual general meeting before it re-registers as a private company.
“Despite the company’s positive commercial and operational progress, the challenging financial market conditions in recent years, combined with a limited free float and lack of liquidity of its ordinary shares, has negatively impacted the market capitalisation, which the directors believe does not accurately reflect the company’s value,” the board stated.
“The considerable ongoing cost of maintaining admission to trading on AIM, along with the significant amount of management time and regulatory burden associated with maintaining the company’s AIM listing… the directors believe the time and cost savings associated with the cancellation could be better utilised for the benefit of the company and its shareholders.
“The directors are of the opinion that raising further significant equity through AIM would be challenging in the short or medium term and potentially may not be available at a valuation that is acceptable to shareholders, or at all.”
Both of the company’s major shareholders have expressed their support for the proposed cancellation and re-registration, it said.
It is the intention of the company to offer a matched bargain facility to allow shareholders the ability to trade in the Ordinary Shares following cancellation.
“Irrespective of the outcome of the proposed cancellation and re-registration, the company intends to continue to explore a primary listing on The Stock Exchange of Hong Kong Limited in due course,” Allergy Therapeutics added.
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