Technology group Datatec is cancelling its secondary listing on the London Stock Exchange’s AIM as the platform failed to diversify its investor base.
But Datatec said its JSE primary listing would remain. The AIM listing would be cancelled on December 8 after 11 years on that bourse.
The listing in London was intended to provide Datatec with greater access to capital to support growth of its global businesses and attract a broader range of institutional investors. "However, the AIM listing has not had the desired effect of diversifying Datatec’s investor base," Datatec said.
The group said the liquidity of the shares on AIM had been "very poor and no significant investors" from the UK market had invested in Datatec shares via AIM. As much as 24% of Datatec’s shareholding was not South African and it was invested via the JSE because of good liquidity in the market, it said.
The group operates in Europe, the US, Africa and the Middle East, providing a range of technology services.