What Is a Relisted Company?
A relisted company is one that returns to the public market after a period of not beingquoted on an exchange. Companies candelist for two primary reasons: they fail to comply with various listing requirements, or they willingly remove shares from the market, as Dell did from 2013 to 2018.
Other potential reasons fordelisting a stockinclude a forthcoming bankruptcy, failure to file mandatory reports, or share prices below the exchange's minimum threshold. When the companyputs its house in order and meets the listing requirements, it can apply to relist its shares. Oftentimes, relisting a company is met with mixed opinionsfrom investors and may have onlylimited success during its second stint on the market.
Key Takeaways
- With relisting, a company's shares are made available again on a public market after a period of having been unavailable publicly, due to having been pulled from that market.
- Usually, a relisted company is one that was pulled from a public market due to bankruptcy, failing to fulfill an exchange's requirements, or in some cases, voluntarily by the company.
- Relisted companies are often met with wariness by investors, who perceive the shares as still being tainted by the company's previous issues; however, there are instances when relisted shares are embraced by buyers.
- A company subject to delisting for failing to meet an exchange's requirements will typically have 30 days toresolve the issues, which could include falling below the minimum share price or failing to pay listing fees.
Understanding Relisting
A relisted company, unlike a hot initial public offering (IPO), is often received with mixed reactions and may even weigh down share prices. Investors may factorin the company's previous indiscretions when evaluating therelisted shares. If the conditions that triggered the delistingwere fundamental, meaning issues inthe income statement like shrinking revenue orprofit, the stock's appeal would likely fall even further.
Historically, few companies have reached similar highs or valuations after relisting shares, but it's certainly not a death sentence. Many companies canand have returned to compliance and relisted on a major exchange like theNasdaq after delisting.
To be relisted, a company has to meet all the same requirements it had to meet to be listed in the first place.
Overview of theDelisting Process
Listing on a major exchange requires companies to meet several requirements, including a minimum share price, a certain valuation of all publicly issued shares, a code of conduct applicable to all employees, and ongoing disclosure of all material news, among other factors. If a company fails to meet any of these conditions, the exchange will send a deficiency noticebefore beginning the delistingprocedures.
The company usually has 30 consecutive days to address the outstanding problems before receiving an official delisting notice. Some requirements like falling below the minimum share price are difficult to fix but others like listing fees have a simple solution—pay the fee.
When a stock is delisted from a major exchange and moved down to the OTCBB or the pink sheets, you still own the shares you bought, but you may want to weigh whether you want to continue owning the shares, considering the challenges the company is facing.
If the company believes the delistingnotice is unwarranted, they can file an appeal to the exchange typically within seven to ten days of receiving the delisting letter. They can also appeal to the Securities and Exchange Commission (SEC) or a federal court in the event it fails to convince the exchange listing qualification panel.
Neither the OTC Markets Group nor the OTC Bulletin Board have listing standards, but the SEC still requires companies to file current material before issuing a stock over the counter.
When a stock is delisted from a major exchange, it will often move over to either the more regulated Over-the-Counter Bulletin Board (OTCBB) or the less-regulated pink sheets system. Dropping off of one of the major exchanges tends to result in a loss of investor confidence, and institutional investors may stop researching and trading the stock, giving individual investors less access to information. Stocks that are delisted and drop down to the OTCBB orthe pink sheets tend to be seen as on the road to filing for Chapter 11 bankruptcy.
FAQs
A relisted company is one that returns to the public market after a period of not being quoted on an exchange. Companies can delist for two primary reasons: they fail to comply with various listing requirements, or they willingly remove shares from the market, as Dell did from 2013 to 2018.
What does re-listing mean? ›
At its core, delisting and relisting real estate means deactivating all content designed to market the property and then giving the process another go when you're ready.
How does a stock get relisted? ›
A delisted stock can be relisted only if SEBI permits it. The market regulator lays out different guidelines for relisting such shares. Relisting of voluntarily delisted stocks: Such shares will have to wait five years from their delisting date to get relisted again.
What does relisted item mean on eBay? ›
eBay Features. eBay Motors. Member Communications. Relisting an item creates a new listing with all of the properties of the previous listing, except those that the seller explicitly changed. If a listing ends, it may be eligible to be relisted.
Why would an item be relisted? ›
If an item you list on eBay doesn't sell, we can automatically relist it for you to get it back in front of buyers. You can also relist your item manually if you need to. For example, if you ended your listing early for some reason but now you want to put it back up on eBay.
What is the relisting process? ›
Relisting means making the company's shares public again, which requires sticking to the same conditions as the first listing. These include keeping a minimum stock price, a certain value of shares out in the public, and a code of conduct for workers.
What does it mean when a listing is reactivated? ›
Reactivated (RACT*): A listing that was previously showing Contingent, Pending or Temporarily No Showings. The Reactivated status will show on connectMLS for five days (unless an additional status change is made to the listing) and then revert to an Active status. Available for showings.
Does relisting count as a new listing? ›
Manually relisting an item makes it a "new" listing. There shouldn't be any history.
What does active listing mean? ›
Most of the properties listed in the multiple listing service (MLS), the database where real estate agents list homes for sale, will have an active status. That's because an active status means that the home is currently available for sale.
What happens when a stock is delisted and relisted? ›
When a stock is delisted, it's no longer traded on a public exchange. That could lead to a lower stock value, so it's generally best to sell your stocks before they become delisted. A delisted stock could later be relisted, but it's unlikely.
The consequences of delisting can be significant since stock shares not traded on one of the major stock exchanges are more difficult for investors to research and harder to purchase. This means that the company is unable to issue new shares to the market to establish new financial initiatives.
Do I lose my money if a stock is delisted? ›
Once a stock is delisted, stockholders still own the stock. However, a delisted stock often experiences significant or total devaluation. Therefore, even though a stockholder may still technically own the stock, they will likely experience a significant reduction in ownership.
How to tell if an item has been relisted on eBay? ›
If the original item is still on their watch list, then it will show that the item is relisted, and has a link to go to the new listing. There is a site preference for notifications that a potential buyer can opt into. The default is no notifications about price changes or relisted watched items.
How do I stop my item being relisted on eBay? ›
To cancel your automatic relisting:
- Go to My eBay > Activity > Selling > Active and locate your listing.
- In the More actions drop-down menu, select Remove Automatic Relist.
- Save your changes.
It's important to cancel any unpaid items within 30 days from the day the buyer commits to buy so the item can be relisted. You don't have to contact the buyer if they haven't paid – we'll send them reminders to pay. If you don't receive payment, you can cancel the order after 4 calendar days.
Why is a house relisted? ›
A listing in real estate allows sellers to show their property is for sale in the real estate market. The information you see on the listing comes from the real estate listing terms agreed on by the owner and the agent authorized to handle the sale of the property.
Can a stock get relisted after being delisted? ›
A delisted stock can theoretically be relisted on a major exchange, but it's rare. The delisted company would have to avoid bankruptcy, solve the issue that forced the delisting, and again become compliant with the exchange's standards.
