Yesterday.....
China Minzhong is down 9.4% at S$0.77 in strong volume accounting for 6.6% of shares changing hands on the SGX, dropping below the S$0.80/share price of a block trade of 57.231 million shares, or about 10.3% of shares outstanding.
"It has probably resulted in more shares in the market, so there's now an overhang issue," says an analyst who declined to be named.
GIC, Franklin Templeton Investments Corp. and Olympus Capital Holdings Asia are the only three shareholders with at least that many shares and Olympus Capital held a stake of the same size as the block trade.
The company said it was unable to comment at this time; GIC couldn't immediately be reached for comment. Orderbook quotes suggest the stock's intraday low of S$0.76 may offer support.
Today.....
Shares of China Minzhong jumped after it said institutional funds and high net worth investors had bought a 10.3 percent stake in the food processing firm from Olympus Capital Holdings Asia at a placement price of S$0.80 per share.
China Minzhong shares rose as much as 6.7 percent to S$0.80 after a trading halt was lifted on Friday. Nearly 14 million shares were traded, 1.8 times the average full-day volume over the past 30 days.
But even after the rise, the stock was still down nearly 2 percent so far this year, lagging the 25 percent gain in the FT ST Small Cap Index.
China Minzhong shares had plunged almost 12 percent on Thursday after a block trade fuelled speculation that one of its largest shareholders had sold its stake.
Olympus, a private equity fund, had invested in China Minzhong since 2006, the company said in a statement on Friday.
"However, given the closed end nature of private equity funds, it is a natural progression for private equity firms to liquidate their investments post IPO and return capital to their investors," China Minzhong said.
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