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, which may not be welcome. This is particularly the case where the business is engaged in sensitive negotiations or controversial activities.
■ Takeover risk. Shares of the business may be purchased by an unwelcome bidder, which may result in a takeover.
■ Investor profile. A business may be dominated by a few investors who wish to retain control of the business. If there is no need to raise further capital through public issues, the case for listing is not compelling.