Shares of the latest public offer to the market by RA Williams Distributors limited, distributors of pharmaceutical products in Jamaica, commenced trading on the Junior Market of the Jamaica Stock Exchange on Wednesday, with the price falling sharply below the offer of $1, after hitting a low of 75 cents in the early morning session before rebounding to 84 cents but since then traded at 80 cents as investors head for the exit.
Just over one million shares were traded in the morning session of the Jamaica Stock Exchange, up to 11 o’clock. The stock continues to be under selling pressure, with more than one million shares lined up for sale below the IPO price. There are limited bids up to 78 cents, suggesting that the price is likely to fall further before settling.
The attached listing shows the outstanding orders minutes before 11 o’clock today.
The stock IPO price was in line with the average market value, leaving no room for growth in the short run. Some investors clearly saw that hence the lukewarm level of over subscription. Management now has work to do the repair the breach. The first think is to get earnings growing attractively to encourage increased buying and less selling.
RA Williams share plunges on listing
August 28, 2024 by
