Delisting on the ASX in 2025: What Investors Need to Know

In 2025, ‘delisting’—the removal of a company’s shares from the Australian Securities Exchange (ASX)—has become a hot topic as new regulations and market shifts reshape how companies and investors engage with public markets. With several high-profile delistings making headlines and regulatory tweaks by ASIC and the ASX, understanding what delisting means and its implications is more crucial than ever for Australian investors.

What Does Delisting Mean, and Why Does It Happen?

Delisting occurs when a company’s shares are removed from public trading on the ASX. This can be voluntary (initiated by the company) or involuntary (forced by the ASX or regulators). The reasons for delisting in 2025 are as diverse as the market itself:

• Takeovers and Mergers: When a company is acquired, its shares are often delisted as it becomes part of a larger entity.
• Failure to Meet Listing Requirements: If a company can’t maintain the minimum standards for listing—such as market capitalization, number of shareholders, or reporting obligations—the ASX may force a delisting.
• Strategic Restructuring: Some companies choose to delist to avoid the compliance burden and costs associated with being a public company, especially with heightened regulatory scrutiny in 2025.
• Financial Distress: Companies facing insolvency or persistent trading suspensions may also face involuntary removal.

Recent examples include fintech startups consolidating to weather tighter capital markets and mining juniors delisting after exploration setbacks.

Regulatory Changes and Delisting Trends in 2025

This year, the ASX and ASIC have introduced new measures designed to enhance market transparency and protect shareholders. Key updates include:

• Stricter Continuous Disclosure Rules: In response to recent corporate scandals, the ASX now requires more frequent and detailed updates from listed companies. Those failing to comply risk suspension and eventual delisting.
• Shareholder Engagement Requirements: Companies seeking voluntary delisting must secure approval from at least 75% of voting shareholders—a higher threshold introduced in late 2024 to safeguard minority investors.
• Streamlined Exit for Small Caps: A new fast-track exit process allows micro-cap companies struggling with compliance costs to delist more efficiently, provided they give clear notice and alternative liquidity options to shareholders.

According to ASX data, voluntary delistings are up 18% year-on-year, with many citing compliance costs and a challenging IPO landscape as deciding factors.

What Happens to Investors When a Company Delists?

For shareholders, a delisting can be unsettling—but it’s not always the end of the road. Here’s what typically unfolds:

• Share Sale or Buyback: In takeovers, investors are usually offered a cash payout or shares in the acquiring company. In voluntary delistings, companies often arrange a buyback or third-party sale facility.
• Unlisted Shareholding: If you retain shares post-delisting, you may hold them in an unlisted company. Trading these shares becomes more complex, often requiring private arrangements.
• Tax Implications: Delisting can crystallise capital gains or losses. The ATO confirmed in its 2025 guidance that a delisting event may be treated as a CGT event, affecting your next tax return.
• Ongoing Communications: Delisted companies must still keep shareholders informed of major developments, but regular reporting obligations are reduced.

For example, in March 2025, tech firm GreenByte voluntarily delisted after a private equity takeover. Shareholders received a mix of cash and rollover shares in the new private entity, with clear instructions on how to manage their new holdings.

How to Respond if a Company You Own Is Delisting

If you receive notice that a company you own is delisting, here’s a practical checklist:

• Review the company’s delisting proposal and the alternatives offered.
• Vote or submit your response by the deadline if shareholder approval is required.
• Assess liquidity options—consider selling on-market before delisting if possible.
• Check for any tax events and update your records for the financial year.
• Monitor communications from the company for updates on unlisted shareholding or further corporate actions.

Staying proactive ensures you’re not caught off guard and that you make informed decisions in line with your broader investment strategy.

The Bottom Line

Delisting is becoming more common on the ASX as 2025 brings regulatory change and shifting market dynamics. While it can be disruptive, understanding the reasons behind delisting, recent policy updates, and your options as a shareholder puts you in a strong position to respond confidently. Stay informed, act decisively, and keep your investment goals front and centre as the ASX landscape evolves.