PRIVATE EDUCATION
Rights issue sparks volatility, but Stadio still gets good marks
Shares in private education group Stadio surged another 6.5% to R6.55 on Thursday, after a volatile week for the recently listed tertiary business of Curro. Volatility in the share price was largely related to the group’s rights issue, but the share price remained well supported and there also appeared to be interest from institutional investors in the stock, said Nicholas Sorour, a portfolio manager at Sasfin Securities. Stadio plunged 24.63% on Tuesday, when shares began trading ex-rights and gained 40.32% in the previous three sessions. It is up 5.65% so far this week and has gained 18% since its listing. Private education group Curro unbundled Stadio into a separate listing at the beginning of October, with the company seeking to raise R640m through the rights offer. As of Tuesday, acquiring 100 Stadio shares conveyed a right to about 57.2 right offer shares, at a subscription price of R2.50. Sorour said the drop on Wednesday was probably due to the dilutionary effect of the rig...
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