Canaccord Genuity Group Inc. plans to delist its shares from the London Stock Exchange. The last day of trading will be March 31.
In a release, the Vancouver-based full-service brokerage firm said the decision was made because of "limited liquidity" and the "costs and administrative burden of maintaining the listing." Canaccord went public on London's Alternative Investment Market (AIM) in 2005, a year after its initial public offering in Canada. The brokerage moved up to the senior London Stock Exchange (LSE) in 2012.
Historically, the U.K. has been a key market for the firm. Canaccord brought scores of Canadian resource and technology firms public on the AIM in the 2000s. The AIM, much like the TSX Venture Exchange, is a small-cap, resource-focused exchange. Canaccord's once-thriving business on the AIM was built in part by its late chief executive officer, Paul Reynolds. He died suddenly last April.
Over the past few years, Canaccord, like many independent broker dealers, has been hit hard by the prolonged and painful rout in resources. Secular changes in the industry, such as the steep decline in profitability for business segments such as sales and trading, have also repeatedly buffeted the firm.
Last month, Canaccord posted a staggering $346-million quarterly loss – its steepest by far as a publicly traded company. It also announced a major round of job cuts, with more than 50 people let go in the U.K. alone.
But Canaccord, under new CEO Dan Daviau, has been hiring selectively. Yesterday, in a memo sent to staff, the firm announced it had hired Jason Robertson as managing director, investment banking and head of diversified – Canada. Mr. Robertson, a veteran banker with more than two decades of experience, had been in a similar role at rival broker GMP Capital Inc.