Future Mobility Solutions, the company formerly known as SeaLegs, plans to delist from the NZX, saying the market is too small.
FMS has previously discussed plans to seek a listing on an overseas market but in its annual report released today chairman Eric Series and acting chief executive Mark Broadley told shareholders it would also seek their approval for de-listing "in due course."
"The board believes that FMS is consistently undervalued by the stock market in New Zealand, suffers from thin trading liquidity ... a situation which must be remedied for the long-term benefit of FMS and all its shareholders," the two said.
Earlier this week, market operator NZX announced it was mulling a simplified structure that could combine the main NZSX board, the NZAX alternative market which is being phased out, and its replacement market for small caps, NXT, after the two smaller cap markets have failed to find support. The Wellington-based bourse has been reviewing its current equity market structure in response to feedback that it's not meeting the needs of the smallest listed companies.
GeoOp, the unprofitable management app developer, announced yesterday it is planning to leave the NZAX, dependent on a shareholder vote on July 14th. Last week, G3 Group, which was the first company to list on the NXT, said it's considering de-listing after receiving a proposal from majority shareholder the Christian Family Trust.
At NZX's annual meeting today, chairman Mark Peterson said New Zealand was "too small for three equity markets." NZX is also looking into the structure of its broader market and its listing rules for current main board issues, which were last reviewed in 2003.
FMS shares last traded at 16.2 cents and have gained 41 percent this year.
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