Question 7.RQ.2: Why might a listed business revert to being an unlisted busi...

A listed business may wish to revert to unlisted status for a number of possible reasons. These include:

• Cost. A Stock Exchange listing can be costly as the business must adhere to certain administrative regulations and requirements for financial disclosures.
• Scrutiny. Listed businesses are subject to close scrutiny by analysts and this may not be welcome if the business is engaged in sensitive negotiations or controversial activities.
• Takeover risk. The shares of the business may be purchased by an unwelcome bidder and this may result in a takeover.
• Investor profile. If the business is dominated by a few investors who wish to retain their interest in the business and do not wish to raise further capital by public issues, the benefits of a listing are few.