Investment firm Hermes Pacific has become the latest company to exit the London Stock Exchange with bosses saying they believe its shares are undervalued.
The firm, which listed on London’s junior AIM market in 2013, has seen its share prices drop month-on-month for the past year from 147 pence on September 30, 2023, to 52 pence at last close.
Hermes Pacific shifted its focus to property investment in December 2022, but high interest rates have since made this “less attractive than holding cash.” However bosses said the company’s London listing had “significantly inhibited” its flexibility.
It added that the “management time and the legal and regulatory burden” associated with maintaining its AIM listing was disproportionate to the benefits and that it expected the move to result in significant cost savings.
In a statement a company spokesman said: “The company became an investing company in 2012 adopting an investing policy of making investments in the financial services sector with a focus on South East Asia.
“Having made a few small investments, the company was unable to find other investments that met its investment criteria.
“Therefore, in December 2021, the company changed its investment policy to focus primarily on the property sector.
“In May 2022 the Company acquired a residential property in Westcliff-on-Sea. During 2022 and 2023 interest rates increased significantly making property investments less attractive relative to holding cash and therefore since then the company has made no further investments.
“In light of this, the Board reviewed its current status and future options including the benefits and drawbacks to the company retaining its admission on AIM. The board has concluded that the cancellation is in the best interests of the company and its shareholders as a whole.”
The decision by Hermes Pacific follows a deluge of delistings post-pandemic, with the research in April revealing a total of 76 companies had delisted from AIM since April 2023, up 62 per cent from the 47 delistings in the previous year.
