91% of Queste shares sit with top 20 holders as delisting vote looms

Queste seeks approval to leave the ASX

Queste Communications Ltd (ASX:QUE) wants to end its 28-year run on the ASX, putting a voluntary delisting resolution to shareholders at its annual general meeting on 27 November 2026. The proposal is not yet approved: it requires a special resolution and subsequent acceptance by ASX.

If both hurdles are cleared, Queste expects trading to finish on 29 December, with delisting no earlier than 31 December. The timetable is indicative, and the final suspension and removal dates will be confirmed after shareholder approval and consultation with ASX.

A market with little room to trade

The company’s central argument is structural rather than operational. Just 180,465 shares traded in the nine months to 30 September, equal to 0.7% of shares on issue. Annual turnover over the previous three years ranged from 1.9% to 2.4%, while the stock closed at 5 cents on 23 October.

Ownership is even more concentrated. The top 20 shareholders controlled 91.03% of Queste as at 23 October, while the four substantial holders collectively owned 71.21%. Queste says the resulting free float is too small to support an orderly or liquid market, and does not expect shareholder spread or trading depth to improve materially in the foreseeable future.

The company recently completed its minimum holding buy-back, cancelling 209,322 shares held by 70 shareholders. The proposal follows the earlier unmarketable parcel buy-back, which had been reported as underway in August, but the latest figures still show a tightly held register rather than a broad retail market.

Cost savings weighed against shareholder access

Queste estimates that leaving the exchange would save about $40,000 a year through lower ASX:CHESS, ASIC, registry, audit, accounting and administration costs. The board also argues that the listed price has not reliably reflected underlying asset value: at 30 June 2026, its reported VWAP was 5.7 cents against post-tax net tangible asset backing of 12.28 cents, a 54% discount.

For shareholders, however, the trade-off is straightforward. Queste’s shares would cease to be quoted, CHESS-sponsored holdings would move to the issuer-sponsored register, and sales would generally require private negotiations with a buyer. The company may investigate a private trading platform, but gives no assurance that one will be established or that it would provide meaningful liquidity.

Queste says it intends to consider an on-market buy-back before suspension, subject to appointing a broker and sufficient trading activity. ASX rules require trades to have occurred on at least five days in the preceding three months for such a buy-back, meaning the very illiquidity cited as a reason for delisting could also limit the practical value of that option.

Investment company remains profitable but lightly traded

The annual report shows a consolidated profit before tax of $107,703 for the year ended 30 June 2026, compared with a $160,234 loss a year earlier. The result was driven principally by a $400,000 fair-value gain on Orion Equities’ investment property. Queste’s parent-company profit was $184,872, and no dividend was declared.

After delisting, Queste would remain a public company subject to the Corporations Act. It would continue to prepare annual audited accounts and hold annual meetings, and would remain subject to continuous disclosure while it has at least 100 shareholders. It would also retain exposure to its 59.86% holding in ASX-listed Orion Equities, alongside investments linked to Bentley Capital, Strike Resources and LE Minerals.