Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
shares withdrawal
World exchanges

More and more company owners prefer to withdraw their shares from stock exchanges

30.05.2021
2 min read

Why shares withdrawal is so popular

More and more companies are buying shares on stock exchanges in order to move from public to private status. According to many businessmen, this option of doing business at the moment is less risky. For example, private companies are not subject to volatility, which is growing rapidly at stock exchanges. Most often, the owners are much fewer than public companies, which means that negotiations on the size of dividends and distribution of income are much faster and easier. Another advantage is that the publication of financial statements is optional for private companies. Delisting is also due to the fact that stock exchanges are no longer the only source of investment attraction.
According to information from Bloomberg, last year the companies sent 26 billion dollars to buy back their securities. This figure is 2500% higher than in 2019. Within a few years, more and more businesses are abandoning the initial public offering. The reverse dynamics is also gaining popularity – delisting, and the pandemic contributes to this process.
The stock market has still not recovered from the pandemic and stock prices are low. In addition, there is a decline in business activity, with the volume of transactions decreasing by 33%. The amount of investments into private companies decreased by 15%, although the amount of available funds exceeds the previous figures.

shares withdrawal

Recently, there have been several major withdrawals from stock exchanges in the Asia-Pacific region. A vivid example is Wheelock and Company. Its founder, billionaire Peter Wu, bought back his own shares, offering a value 52% higher than it was in the market. In Hong Kong delisting was carried out by the trading company Li & Fung. The total volume of share buyback at the Hong Kong Stock Exchange last year was $9 billion.
Billionaire Anil Agarwal, the owner of Vedanta from India, also plans to withdraw the securities from the market. The businessman has put the price of 1.16 per paper, which is 9.9% more than in the market. The reason for the redemption was the decline in the quotes of the company, which sank by 40%.
A large Japanese investment holding SoftBank is thinking about moving to the status of a private company. The management is now engaged in a dialogue with the shareholders about the possibility of buying back the securities. SoftBank is not satisfied with the assessment of market capitalization of the business. This value is 130 million dollars, and the company’s investment portfolio is 343 billion dollars.
German billionaire Oliver Samver also announced the redemption of shares of his corporation Rocket Internet. According to the businessman, the exchange is no longer the best option for raising funds. In the future the company plans to receive financing from private investors.

Tags: World exchanges
0
Previous Post Investment in biotechnology reaches record highs: analysis of the Far Eastern High Technology Fund segment Next Post Ford will build a new plant for the production of electric cars

You Might Also Like

kenanga
World exchanges
Kenanga bought a part of shares of cryptocurrency exchange Tokenize Xchange
06.11.2021
China's stock exchanges
World exchanges
China’s stock exchanges are the world leaders in the number of IPOs
14.09.2022
Indian stock exchange
World exchanges
National Stock Exchange of India: an inside look
04.06.2020
Asian markets
World exchanges
Asian markets are showing growth: overview of trends in Asia and the Pacific
22.10.2020
Japanese crypto exchanges
World exchanges
Japanese crypto exchanges will soon not be required to undergo verification before listing
21.08.2022
The European Stock Exchanges
World exchanges
European Stock Exchanges are reacting sharply to the rise in inflation
04.07.2022

Recent Posts

  • 1Erik Penser
    Erik Penser: the ups and downs of the Swedish businessman
    30.03.2023
  • 2Royal Dutch Shell logo
    Royal Dutch Shell: the history of the British-Dutch company
    29.03.2023
  • 3discount window features
    Discount window: peculiarities of lending from the Federal Reserve System
    28.03.2023
  • 4LG Energy Solution
    LG Energy Solution invests in battery production expansion
    27.03.2023
  • 5troubled crypto exchanges-2
    SEC to closely monitor troubled crypto exchanges
    26.03.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • William O’Neill – author of a unique trading strategy

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Japanese Central Bank
Japan’s Central Bank widened the range of bond yields
31.03.2023
Erik Penser
Erik Penser: the ups and downs of the Swedish businessman
30.03.2023
Royal Dutch Shell logo
Royal Dutch Shell: the history of the British-Dutch company
29.03.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Where can one obtain citizenship for investing in a country: overview of states?
  • Alibaba Group: the secret of success from the founders of Aliexpress
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics