Fusionex shares collapse as company announces plans to delist

Shares in AIM-listed big data provider Fusionex collapsed this morning following the news late on Friday that the company intends to cancel the trading of its shares on AIM.

The Malaysian firm said that it believed its performance on the AIM market to date had been disappointing, with its trading, strategic partnerships and growth potential not adequately reflected in its share price.

The company added that uncertainty in the UK, a lack of equity research, and weak liquidity had all contributed to the "under-valuation":

"The Directors believe the reasons for this under-valuation are multiple and complex, but specifically include a lack of liquidity, and in part, a lack of in-depth independent research into the Company. It is not possible to attribute this to one single factor, however, the Directors believe that the current political uncertainty in Europe is unhelpful, which makes the public markets in the United Kingdom less attractive for Fusionex than at the time of the IPO. These are factors beyond the control of Fusionex and its Board of Directors, which has led the Directors to decide on this course of action."

To make matters worse, news emerged over the weekend that a row had erupted between members of the Board and its nominated Broker and PR firm, with the Times reporting that Peel Hunt and Buchanan had resigned over a "plot" by CEO Ivan Teh to cancel the AIM-listing. 

Mr Teh, who founded the group, owns a 41% stake and has reportedly got support from two other major shareholders, bringing the total shareholder support for de-listing close to 75%.

The news sent shareholders rushing to exit FXI over the long weekend, resulting in a 60% fall as the company opened on Tuesday.