KUALA LUMPUR: According to a Bursa Malaysia announcement on Wednesday, Deepak Jaikishan had sold off his six million shares or a 5.06% stake in ACE-market listed Envair Holdings Bhd in the open market on Dec 14.
Envair’s share price has collapsed by a total of 25.35% in two days, closing at 26.5 sen yesterday since the news of Deepak’s divestment was made public on Wednesday. The stock has slumped 36.1% since hitting a peak of 41.5 sen on Dec 19.
The news contradicts a press release purportedly issued by Deepak on Dec 6 that claimed he had no intention of selling down his stake and was in fact looking to steadily increase his holdings in the coming weeks to 10% from his current 5.06%.
To recap, Deepak, Carpet Raya Sdn Bhd’s director, had emerged as a substantial shareholder of Envair on Dec 2 with a stake of 5.06% or six million shares at 22 sen.
Four days later, a letter purportedly from Deepak was sent to several newspapers with a press release claiming Deepak was looking to increase his stake in Envair to 10%.
Another national daily carried the contents of the letter on the front page of its business section the following day.
The Edge Financial Daily did not carry the contents, but responded on Dec 8, highlighting the unusual circumstances of the press release, which did not carry a letterhead, address or signature.
Whatever the case may be, Deepak’s sudden departure from Envair left him none the poorer.
The Edge Financial Daily estimates that Deepak’s one-and-a-half week venture could have netted him a gain of about 65% on his initial investment of RM1.32 million.
In the announcement on Wednesday to Bursa Malaysia, no price was stated for the shares, which were sold on the open market on Dec 14.
On that day, Envair’s shares were traded between 34.5 sen and 38 sen, with 62.55 million shares changing hands.
Based on the average intraday price of around 36.3 sen, Deepak could have made around 14.3 sen a share or about RM858,000.
Envair closed 10.9% higher at 35.5 sen on Dec 14 compared with 32 sen the previous day.
It continued to climb for three days to an intra-day high of 41.5 sen last Friday and Monday, before falling for the last four days.
This article appeared in The Edge Financial Daily, December 23, 2011.
Envair’s share price has collapsed by a total of 25.35% in two days, closing at 26.5 sen yesterday since the news of Deepak’s divestment was made public on Wednesday. The stock has slumped 36.1% since hitting a peak of 41.5 sen on Dec 19.
The news contradicts a press release purportedly issued by Deepak on Dec 6 that claimed he had no intention of selling down his stake and was in fact looking to steadily increase his holdings in the coming weeks to 10% from his current 5.06%.
To recap, Deepak, Carpet Raya Sdn Bhd’s director, had emerged as a substantial shareholder of Envair on Dec 2 with a stake of 5.06% or six million shares at 22 sen.
Four days later, a letter purportedly from Deepak was sent to several newspapers with a press release claiming Deepak was looking to increase his stake in Envair to 10%.
Another national daily carried the contents of the letter on the front page of its business section the following day.
The Edge Financial Daily did not carry the contents, but responded on Dec 8, highlighting the unusual circumstances of the press release, which did not carry a letterhead, address or signature.
Whatever the case may be, Deepak’s sudden departure from Envair left him none the poorer.
The Edge Financial Daily estimates that Deepak’s one-and-a-half week venture could have netted him a gain of about 65% on his initial investment of RM1.32 million.
In the announcement on Wednesday to Bursa Malaysia, no price was stated for the shares, which were sold on the open market on Dec 14.
On that day, Envair’s shares were traded between 34.5 sen and 38 sen, with 62.55 million shares changing hands.
Based on the average intraday price of around 36.3 sen, Deepak could have made around 14.3 sen a share or about RM858,000.
Envair closed 10.9% higher at 35.5 sen on Dec 14 compared with 32 sen the previous day.
It continued to climb for three days to an intra-day high of 41.5 sen last Friday and Monday, before falling for the last four days.
This article appeared in The Edge Financial Daily, December 23, 2011.
