Argent BioPharma has decided to exit the London Stock Exchange citing regulatory and cost concerns, impacting its market strategy.
- The company will maintain its presence on the Australian stock market to optimise resources and reduce complexities.
- Argent BioPharma’s share value plummeted drastically since its debut on the LSE, highlighting financial challenges.
- The decision aligns with a trend of tech firms delisting from the LSE amid similar concerns.
- Other companies, like Just Eat and OTAQ, are also shifting focus away from London listings.
Argent BioPharma, a medical technology firm based in Subiaco, Western Australia, has announced its departure from the London Stock Exchange (LSE). The decision, made public on Friday, stems from the company’s desire to alleviate the administrative burdens and costs associated with maintaining a dual listing. By focusing on its Australian listing, Argent BioPharma aims to streamline its operations and optimise administrative efficiencies, which it believes will support future growth.
The firm’s initial public offering in London took place in 2021, a time when tech companies were increasingly listing on the LSE. However, Argent BioPharma has struggled significantly with its valuation, which dropped from an original listing price of 4950p to a mere 9p as of recent trading. This catastrophic decline, amounting to a 99.8% loss, underscores the severe financial difficulties faced by the company.
The latest financial data for Argent BioPharma, covering the year ending June 2023, reveals a loss exceeding £4 million against a scant revenue of £120,000. The financial strain, combined with the demands of dual listing, rendered the continuation of its London presence untenable. The company’s move mirrors a growing trend of businesses leaving the LSE due to similar issues, including escalating regulatory costs and diminished market liquidity.
This strategic shift is not isolated. Just Eat Takeaway, a leading food delivery service, is also retracting its secondary listing in London. The company cited low trading volumes and excessive administrative requirements as key factors in its decision to concentrate efforts on its primary listing on Euronext Amsterdam.
Similarly, OTAQ, a maritime technology firm, has signalled its intent to delist from the Aquis Exchange, while the LSE’s Alternative Investment Market (AIM) has seen numerous companies exit over the past year. These moves reflect a broader industry sentiment where businesses reconsider the viability of maintaining listings in London, driven by a blend of regulatory, financial, and operational challenges.
The shift by Argent BioPharma and others away from the London Stock Exchange highlights an ongoing trend of companies seeking more favourable listing environments.
