Why do companies delist?
Companies need to maintain certain requirements by the stock exchange to continue as a listed company. Some of these requirements for the ASX include a minimum of 300 non-affiliated investors and a market capitalisation of at least A$15 million. Stocks can voluntary or involuntary delist. Involuntary delisting can occur when the company has breached one of the requirements of the stock exchange. Another reason may be the company is in liquidation and unable to operate. Voluntary delisting means the company …