Ovostar Union canceled private placement of shares
2012-05-28 14:30:40
Ovostar Union initially planned to privately place 8% of the company’ shares with additional 2% in case of the higher-than-expected demand. Nevertheless company’s holders decided to cancel the process as investors were only ready to pay price with the discount to the current market price. Company stated that such price is undervalued and, considering company’s potential for growth and development, does not reflect the actual value of stock.
AgroInvest comment: The most recent decline in public demand for agricultural companies as an investment source was clearly reflected in the given situation as despite overall positive performance of Ovostar Union during FY 2011 and Q1 2012, investors were not persuaded in increase of the company’s value.
For more detail please refer to the UAIndex Daily (May 28 issue).
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