If you need an extreme example, then there's no point to make. Less shares on offer, less liquidity. Simple. It can be beneficial (palatable in your words), because it can attract institutions who avoid volatility. That's why it's not necessarily a good nor bad thing and (as others have stated) is more a reflection of the company itself.
ADN Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
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