Market's view on C4x Discry Hdgs
Published on April 2024
- AJ Bell is capable of handling transactions with Asset Match, potentially limited to a SIPP and possibly involving a fee for acquiring a share certificate.
- Post-delisting, AJ Bell requires that shares be removed from portfolios within 30 days, and shareholders are looking for guidance on this process.
- Market makers are perceived to be pushing for final sell-offs at low prices as the company approaches privatisation.
- Discussion on what to do with shares once the company is private, including transferring them to SIPP providers that handle Asset Match or obtaining share certificates.
- A major shareholder is involved in another biotech firm, ETX, which is also delisting from AIM with aspirations for a NASDAQ listing, indicating a pattern in investor behaviour.
- Clive Dix, Executive Chairman, has increased his holding in the company, which is seen as a positive sign of confidence.
- Concerns about delisting include limitations on selling shares post-LSE exit, particularly in SIPPs, unless further investments are made before delisting.
- Some brokers, like Hargreaves Lansdown, do not issue share certificates, complicating the management of shares post-delisting.
- Asset Match will charge a 3% fee per trade, with a minimum of £20, and additional fees may apply.
- Post-delisting, there will be a “definite dealing facility” for 12 months, but future arrangements are uncertain, raising concerns about the company’s regard for small investors and long-term strategy.
- Handling of shares in SIPPs post-delisting could be problematic, especially when valuing the portfolio for tax purposes if Asset Match ceases operations or becomes unreliable.