Saponia Withdraws Shares from Zagreb Stock Exchange – What’s Going On?
Today, the general assembly of the Osijek-based company Saponia made a shocking decision – to withdraw its regular shares from the regulated market of the Zagreb Stock Exchange (ZSE). Yes, you read that right! The company that has been part of the stock market world for years decided to pull out of the game. But why?
Why the withdrawal?
The main reason? Cost reduction! Saponia stated that their shares are thinly traded on the exchange, meaning the costs of maintaining the listing have become a heavy burden. In other words – why pay to keep something that barely sells?
But that’s not all. The company clearly stated it will buy back shares from all shareholders who vote against this decision, at a fair price, within three months from the registration of the decision in the court register. So, if you are a shareholder, you have a chance to get out of this deal.
Financial results – is Saponia in trouble?
Not really! Last year, Saponia posted a net profit after tax of 4.45 million euros. Adding a carried loss of just 6.9 thousand euros, the available profit stands at about 4.4 million euros. The company’s total revenues were an impressive 49.9 million euros, and the average employee salary was around 18 thousand euros annually. So financially, the company is not in crisis.
What does this mean for shareholders and the market?
Delisting can be a double-edged sword. On one hand, it reduces costs for the company, but on the other, it loses transparency and the ease of selling shares on the open market. For shareholders, this means their investments will be less liquid, and share prices may become unpredictable.
Is this the start of a trend?
Saponia is not the only company considering such a move. More and more firms in the region and beyond are thinking about delisting due to high costs and low investor interest. Is this a sign that stock exchanges are losing relevance or just adapting to new conditions?
Conclusion
Saponia decided to withdraw from the Zagreb Stock Exchange to cut costs and focus on its core business. Although financially stable, this decision could have significant consequences for shareholders and the capital market in the region. Is it a smart move or the start of problems? Only time will tell.
What do you think? Would your company pull shares from the exchange if it could? Or is it better to stay in the game, no matter how tough it gets? Drop a comment, let’s keep the conversation rolling!
