Australian-founded Microsoft partner and SaaS developer LiveTiles has announced it will delist from the Australian Securities Exchange (ASX) amid concerns around its current share price.
In an ASX announcement, the US-based firm said it has submitted a formal request to delist, which will then be put forward for shareholder approval at a general meeting to be held on or around 5 September 2022.
LiveTiles, which develops intranet and digital workplace software built on Microsoft technology, said the delisting comes amid the underperformance of its share price, lower levels of trading liquidity and the flow on consequences.
The Australian Financial Review’s Street Talk column reported earlier this week that LiveTiles is potentially eyeing a listing on the Nasdaq instead or to get acquired by an American group as it looks to move away from the ASX.
LiveTiles said its board considers the share price in recent years implied a valuation that was materially lower than the valuations of unlisted companies of a comparable nature and stage, and that LiveTiles has greater prospects to achieve a better assessment of fair value as an unlisted company.
While currently “well funded” and with no plans to raise capital in the near term, the company also wants to have the option to raise further growth capital in the future without having to incur a higher dilutionary cost on non-participating shareholders. Being unlisted will also provide access to a broader selection of investors.
Also being considered is LiveTiles’ flexibility to pursue and execute “value enhancing strategic opportunities and corporate transactions”, as well as the opportunity to rationalise and reposition its portfolio of software offerings without having to worry about share price volatility.
Attracting “high quality” employees has also been a concern due to the impact of the company’s valuation on its perception as a more attractive employer, and LiveTiles also believes this would be alleviated after delisting.
LiveTiles also said the ongoing administrative, compliance and direct costs associated with the company’s ASX listing are “disproportionate to the benefits” of remaining listed.
Pending approvals from the ASX and shareholders, LiveTiles expects its ASX shares will be suspended on 6 October 2022 and fully delisted on 7 October.
LiveTiles, established in 2012, was spun off from Office 365, Azure and SharePoint consultancy nSynergy. The consultancy was sold to Rhipe in 2015 and LiveTiles was listed on the ASX the same year through a reverse acquisition with Western Australian mining company Modun Resources.