Niks Professional, which offers beauty services and products, plans to delist via a selective capital reduction where shareholders will receive 23 cents each.
This compares to its last traded price of 19 cents. The offer price is the same as its IPO price when the offer was launched in Oct 2023.
The offer of 23 cents is final and will not be revised, the company says.
Controlling shareholders, chairman and CEO Cheng Shoong Tat and his wife, Dr Ong Fung Chin, who hold 82.8% of the shares, will not take part in the selective capital reduction.
Niks Professional will call an EGM for shareholders to approve this deal, where a total sum of $5,144,255.90 will be returned for shares cancelled.
According to Niks Professional, trading volume has been "generally thin". "Daily bid-ask spreads have been very wide and no meaningful price discovery has materialised," the company says.
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In addition, compliance costs as a listco has been relatively hefty at around $328,000 for the most recent full year ended Dec 31 2024.
As a privately held entity, it claims to have greater management flexibility, as it will not be saddled with the attendant cost, regulatory restrictions and compliance issues associated with its listed status.
For Niks Professional, this is "important particularly given the current unpredictable and unstable macro environment, requiring companies to remain nimble."
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It is cheaper to delist via a selective capital reduction, as there will be no bank borrowings, commissions, no external financing requirements, and lower professional fees and involve fewer professional parties.
W Capital Markets has been named the independent financial adviser for this deal.
