E Automotive runs an online auction platform for automotive dealerships and is better known as E Inc.
The company went public at a billion-dollar valuation in November 2021, but two weeks later the Nasdaq Composite index peaked and it has been mostly misery for small-and-medium-sized technology companies since.
In a statement Tuesday, company management said it considered alternatives, including a takeover, but ultimately determined the benefits of de-listing “outweighed the benefits of a going private transaction in the company’s current circumstances.” The company did not immediately return a request for comment.
Existing shareholders have already voiced support for the de-listing. E Automotive is controlled by Intercap Equity Inc., a Toronto-based merchant bank that owns 72 per cent of the company, and Intercap backs the move. Holders of approximately 59 per cent of the remaining shares have also voiced their approval, the company said in a statement.to prospective public investors during the IPO, which was led by Canaccord Genuity, CIBC World Markets and National Bank Financial.
In its reasoning for the delisting, E Automotive explained that its shareholder base has turned over dramatically since its IPO. Institutional shareholders made up over 90 per cent of purchasers in the IPO, but most sold quickly, with the majority exiting before E Automotive had reported a single quarter as a public company. As of today, 95 per cent of institutional investors that bought into the IPO shares have sold, the company said.
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