DG Innovate to delist from London Stock Exchange

DG Innovate plans to delist from the London Stock Exchange and has taken aim at the costs and rules involved in a London listing. 

The research and development company specialising in sustainable transport and energy storage said it had ‘found it difficult to raise sufficient funds to invest in its commercialisation strategy’. 

It added in a statement: ‘This is in part due to its current listing and the constraints of the associated prospectus rules.’ 

DGI shares fell over 66 per cent this morning to 0.026p.  

DGI’s departure follows a string of high-profile moves away from London this year, despite efforts by policymakers to boost the market’s attractiveness with red-tape cutting and listing reforms. 

Approximately 88 businesses had ditched their primary listings on London’s main market by mid-December, while 18 took their place, representing the biggest net outflow since 2009, according to data from then London Stock Exchange Group. 

Earlier this month, FTSE group Ashtead announced plans to shift its primary listing to New York in a blow to London. 

The construction rental group has been listed in London since 1986, but makes nearly all its profits in the US. 

On Thursday, DGI claimed it was ‘also clear that there has been and remains a broad lack of demand for exposure to companies at DGI’s current stage of development within the UK’s traditional institutional investor base.’

It said there were no ‘obvious near-term catalysts’ to improve conditions and claimed the costs of listing were ‘completely disproportionate’ to the benefits of maintaining a listing.

DGI added: ‘Delisting will significantly reduce the company’s cost base and assist the company in raising the capital it requires to invest’. 

The group’s shares are set to be cancelled on 31 January. 

Labour has pushed ahead with reforms to help revitalise London’s capital markets, including by consolidating pension funds to allow for greater investment into domestic companies. 

However, businesses like Paddy Power owner, Flutter, and travel group Tui switched their primary listings from London to rival hubs such as New York and Frankfurt this year.

London has lost out on blockbuster IPOs including that of chip designer Arm, which listed on Wall Street in August 2023. Klarna, the buy now, pay later firm, has followed suit.

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