LMS Capital PLC (AIM:LMS) shares rose 14% in early trading after the investment company announced plans for a managed realisation of its assets.
The board, following a review and consultation with shareholders, concluded that an orderly sale of its portfolio and phased capital returns would deliver the best value.
The decision follows concerns over the persistent discount to net asset value, limited liquidity, and challenges in scaling the business.
A shareholder vote on the proposal will take place at a general meeting expected in late April.
The company is considering an initial capital distribution, subject to working capital and investment needs, and does not intend to pay an annual dividend during the process.
The stock rose 2.6p to 21p.