International ICT solutions and services group, Datatec, has announced plans to cancel its secondary listing of its shares on the Alternative Investment Market (AIM) of the London Stock Exchange.
Cancelation will be effective at 7:00am GMT on 8 December 2017 it said in a SENS notice to shareholders today.
The South African company has been listed on AIM since October 2006. It says it originally listed there to provide the group with greater access to capital with which to support the continued growth of its international businesses and to attract a broader range of institutional investors.
"However, the AIM listing has not had the desired effect of diversifying Datatec's investor base. The liquidity of the shares on AIM has been very poor and no significant investors from the UK market have invested in Datatec shares via AIM. 24% of Datatec's shareholders are non-South African and invest via the JSE because of the good liquidity in the market," Datatec said in the statement.
The primary listing of Datatec shares on the Johannesburg Stock Exchange (JSE) will continue and is not affected by the cancellation of the AIM listing.
Datatec says the cancellation of the AIM listing will only affect those shareholders whose shares are currently held on in its Jersey Register. A letter that explains the procedures of the delisting will be sent to these shareholders.
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