MXC Capital to quit AIM over valuation and costs

MXC Capital said it intended to cancel its shares and quit AIM because the market undervalues the company and to save time and costs.

The technology adviser and investor said its shares had traded at a large discount to its net asset value for several years with little liquidity, leaving shareholders locked in without selling at a big discount. The cost, management time and legal burden of an AIM listing are also not worth the benefits to the company and shareholders, MXC added.

At the end of the past three years MXC shares were valued at 27%, 33% and 22% less than net asset value, the company said. Cancelling the listing will save £0.3m a year. This includes fees for directors Peter Rigg and Simon Freer, who will step down if the cancellation takes place.

"The company has not raised equity capital on AIM for over four years and has no intention of doing so for the foreseeable future and therefore it is the directors' opinion that one of the fundamental reasons to maintain its admission to trading on AIM, access to capital, is no longer required," MXC said.

MXC shares fell 25% to 51.36p at 1024 GMT.

The company has arranged a general meeting on 2 March to approve the cancellation, which requires at least 75% support. If approved MXC will stop trading on AIM at the end of 13 March before the cancellation takes place on 16 March.