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KQ Delisting; What does Delisting mean?

W_Wangaki 06/26/2020

View pictures in App save up to 80% data. Delisting is the removal of a listed security from an exchange thus no longer traded on the bourse. It can either be involuntary or voluntary.

In voluntary delisting.

Occurs when a listed security does not meat the listing requirements such as the value of the share price not being lower than ksh1. It may also occur when the company declares bankruptcy or merges.

Voluntary delisting

When a company decides to become private or when 90% of the total share capital of a company is acquired by the promoter. View pictures in App save up to 80% data.

What happens to the money you invested in the stock when the company gets delisted?

After formal approval an exit window of approximately one year is available to the reaming shareholders. Delisting shall be considered successful only when the shareholding of the acquirer together with the shares tendered by public shareholders reaches 90% of the total share capital of te company.

The promoter of the company is not allowed to participate in the process and the floor price is decided based on revenues book building process. View pictures in App save up to 80% data.

For KQ a bill has been tabled before parliament to voluntarily delist its common stock from the Nairobi Securities Exchange and make it a state entity due to its continuous poor performance in the markets and in profits.

Source: opera.com
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