1. Privatization means that the controlling shareholder of a listed company repurchases all (or most) shares held by minority shareholders, expands the existing shares, and finally makes the number of shareholders of the company small and scattered, which no longer meets the requirements of listing liquidity, thus making the company delist.
2. The premise of privatization is often that the company has a good prospect. The controlling shareholder thinks that the current share price of the company is obviously undervalued. At this time, the share price is very cheap, and it is profitable to buy back a large number of shares. After privatization, the controlling shareholder greatly reduced the loss of sharing the company's interests with other shareholders, enhanced the control over the company, was less restricted by investment institutions and regulatory agencies, and there was no mandatory information disclosure requirement when listing, which also saved a lot of information maintenance costs ... There are many benefits.
Companies that take the initiative to privatize are often promising good companies (only good things are unwilling to share with others), unlike those bad companies that are forced to withdraw from the market.