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Highlights:
- Visioneering Delists After Seven Years
Visioneering Technologies (ASX:VTI), a US-based eyecare company, will voluntarily delist from the Australian Securities Exchange (ASX) after seven years of offering Chess Depository Interests (CDIs). This decision follows concerns about the company's valuation and market liquidity.- Concerns Over Market Valuation and Liquidity
The company has cited ongoing fluctuations in CDI prices, which have not aligned with positive company news. Additionally, Visioneering pointed to low trading volumes and illiquid shares, with many shareholders holding unmarketable parcels.- Exploring Private Markets for Capital
Visioneering indicated that delisting could improve its access to capital, although no certainty was provided regarding more favorable terms. The company suggested it may turn to private markets to raise funds in the future.
Visioneering Technologies (ASX:VTI), a US-based eyecare firm, has announced its voluntary delisting from the Australian Securities Exchange (ASX), marking the end of its seven-year presence on the exchange. The company, which has been offering Chess Depository Interests (CDIs) on the ASX since its IPO in March 2017, cited ongoing concerns over the fair market valuation of its shares and a lack of liquidity as key drivers behind the decision.
Valuation and Liquidity Issues Prompt Delisting
Since its listing, Visioneering’s board observed significant fluctuations in the quoted price of its CDIs, with the market value often disconnected from positive company developments. Despite news releases and updates, the share price did not show consistent alignment with the company's performance. In addition, the company highlighted a significant lack of trading activity, with only a few thousand units traded on average each week and minimal turnover, leading to questions about whether the market was providing a fair value.
Further compounding these concerns, Visioneering noted that 66.67% of its shareholders held “unmarketable” parcels of A$500 or less, indicating that many investors were unable to easily sell or trade their shares.
Possible Shift to Private Markets for Capital Raising
While acknowledging that the delisting may provide the company with better access to capital, particularly in the private market, Visioneering made it clear that no guarantees were made regarding more favorable terms or successful capital raising post-delisting. The company’s future plans may involve a shift back to its U.S. operations, where it hopes to explore more flexible options for funding and growth.
Conclusion
The voluntary delisting marks a significant shift for Visioneering Technologies, as it steps away from the ASX after facing challenges with valuation and liquidity. The company’s focus will now turn to exploring other avenues for raising capital, potentially outside of the public markets. However, the company has been cautious in expressing certainty about the success of these future plans.
