LONDON: Integrated Diagnostics Holdings plc (IDH), a prominent player in the consumer healthcare sector, has initiated a process to delist its shares from the Egyptian Exchange (EGX). The decision comes in response to the sustained low liquidity and trading volumes on the EGX, despite the company’s continued standard listing on the London Stock Exchange (LSE).
Dr. Hend El Sherbini, CEO of IDH, expressed that the original intent behind the EGX listing was to enhance share liquidity and expand the investor base, particularly to benefit Egypt-based investors by leveraging the company’s growth potential. However, the anticipated increase in trading volumes did not materialize, leading the board to conclude that the EGX listing no longer serves its intended purpose.
The proposed delisting is contingent upon the approval of IDH’s shareholders and the EGX, and the company plans to issue a detailed shareholder circular later this month. This circular will outline the procedure for an extraordinary general meeting (EGM) where shareholders will vote on the delisting and related matters.
In preparation for the delisting, IDH has suspended the transfer of shares from the LSE to the EGX, although shareholders can still transfer their shares from the EGX to the LSE. The suspension will remain in effect until the delisting process is complete or otherwise announced by the company.
The board is set to recommend unanimously that shareholders vote in favor of the delisting at the upcoming EGM, asserting that it aligns with the company’s and shareholders’ best interests. Additionally, IDH has disclosed a share buyback plan for EGX shareholders and creditors with mortgaged shares, with further details to be announced.
In summary, IDH is taking strategic steps to optimize its market presence and shareholder value by proposing to delist from the EGX while maintaining its LSE listing and operational commitments in Egypt and beyond.
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