DE-LISTING
10 May 2016 By PDSNETThe removal of a security from an organised exchange - after which it can no longer be traded on that exchange. This typically happens in the share market when a company has been taken over by another company and so no longer needs a separate listing. It can also happen because the company can no longer see the benefit of the listing in relation to the cost of maintaining it. In recent years the size of the JSE has shrunk with 137 delistings and only 83 listings between 2015 and 2020. In October 2021, the following companies were contemplating delistings: Long4Life (L4L), RMB Holdings (RMH), Alaris (ALH), CSG Holdings (CSG), Distell (DGH), Liberty (LBH) and Imperial (IPL) amongst others. During a listings boom such as occurred during 1997 and 1998, the exchange can see a rush of new companies coming to the market, but the combination of COVID-19 following the Zuma years has seen many companies decide that a listing was not worth while. As the economy recovers and benefits from a world-wide bull market in equities, more companies may seek to list. The threat of delisting is also sometimes invoked by the exchange itself if the company concerned is not complying with its rules
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