....that may be a positive spin, but delistings could be due to many going into administration and a number who got taken over (TO).
....in current market climate, Buy and Hold market participants are hoping for takeovers, but takeover offers are limited to offers that value the company at premium above the current lows but nowhere near where most long term sufferers who bought and held bought them at or where the stock price was at at its previous high before the downturn.
....The good companies that offer good value with long term potential gets taken out at discounted prices, retail shareholders get penalised for holding too long believing its LT potential but unable to realise it.
....with little listing premium, IPO activity grinds to a near halt.
....just like funds which people can never imagine that they won't do well over the long term. Some funds can be compromised when there is a big redemption when the market tanks, causing the need for the funds to dump stocks to raise liquidity at just about the wrong time, locking in those losses and thereafter unable to receive new subscriptions if/when the market sees disinterest settting in. It has happened before and it will happen again. It is called Redemption Risk, no different than when a takeover offer is made for your stocks you bought at a price far lower than what you bought them at. ASX delistings surpassing new market entries: EQT
Timothy Moore
In the 12 months through February, the total number of companies listed on the ASX fell by 106 or 0.5 per cent to 2183, while new entities fell by nine to 38, according to EQT Capital Raising.
As at the end of February, 110 companies had withdrawn from the ASX this financial year, compared to 75 at the same time last year, EQT also said.
In a note, Martin Donnelly, managing director of client relations at EQT, said that the trend aligns with a global pattern of increasing privatisation, driven by the desire for simpler ownership structures and enhanced capital fluidity.
“Australian investors are strategically pivoting towards private markets in pursuit of diversification and higher returns,” Mr Donnelly said.
