DG Innovate is delisting from the London Stock Exchange
- R&D company focused on the ‘limitations’ of a London stock exchange listing
DG Innovate plans to delist from the London Stock Exchange and has focused on the costs and regulations associated with listing in London.
The research and development company, which specializes in sustainable transport and energy storage, said it was “finding it difficult to raise sufficient funds to invest in its commercialization strategy”.
It added in a statement: ‘This is partly due to the current listing and the limitations of the associated prospectus rules.’
DGI shares fell by more than 66 percent to 0.026p this morning.
DGI’s departure follows a series of high-profile moves to leave London this year, despite efforts by policymakers to boost the market’s attractiveness through red tape reduction and listing reforms.
About 88 companies had delisted from their primary listings on London’s main market by mid-December, while 18 took their place, representing the biggest net outflows since 2009, according to data from the then London Stock Exchange Group.
Earlier this month, FTSE group Ashtead announced plans to move its primary listing to New York, in a blow to London.
Delisting: DG Innovate plans to delist from the London Stock Exchange
The construction rental group has been listed in London since 1986, but makes almost all its profits in the US.
On Thursday, DGI claimed it was “also clear that there is and remains a broad lack of demand for exposure to companies at DGI’s current stage of development within the traditional UK institutional investor base.”
It said there were no “clear short-term catalysts” to improve conditions and claimed the cost of delisting was “wholly disproportionate” to the benefits of maintaining a listing.
DGI added: “The delisting will significantly reduce the company’s cost base and help the company raise the capital it needs to invest.”
The group’s shares will be canceled on January 31.
Labor has introduced reforms to revitalize London’s capital markets, including consolidating pension funds to allow greater investment in domestic companies.
However, companies such as Paddy Power owner Flutter and travel group Tui have this year moved their primary listings from London to rival hubs such as New York and Frankfurt.
London has lost blockbuster IPOs, including that of chip designer Arm, which listed on Wall Street in August 2023. Klarna, the buy now, pay later company, has followed suit.
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