LinQ Resources Fund shares have nearly doubled in price after the investment company announced a proposal to delist from the Australian Securities Exchange.
LinQ shares were up 45 per cent on the ASX, trading at 66 cents at the close after peaking at 68 cents.
Perth-based LinQ announced late Friday that a range of alternatives had been discussed by the board to reduce a widening of the discount at which its shares were trading in relation to net tangible assets (NTA), and that the best option would be to de-list from the ASX.
“Since the onset of the global financial crisis, the board has noted a significant widening of the discount largely due to market volatility,” the company said in a statement.
“The Board believes that the best option is to delist Linq from the Australian Securities Exchange.
"With the current discount to NTA being approximately 50 per cent, a delisting will result in an immediate uplift to a value nearly double the current trading price."
As part of the proposal, there will be an initial redemption offer and an ongoing redemption facility to give shareholders the chance to realise their investment in the fund at NTA, Linq said.