Traders seemingly keen to haggle about price for Grindrod Shipping share on debut
The floatation of Grindrod Shipping got off to a slow start on Tuesday, with just 17 shares trading for R219 by 10.45am on its debut day on the JSE. There was a wide discrepancy between the prices traders were willing to buy and sell the new share for, whose JSE ticker is GSH. One bidder was offering R142.85, about two-thirds of the R219 asking price. At R219, Grindrod shareholders gained about 17% from the share splitting into a holding company of the shipping business and the remaining logistics and financial services businesses. The original Grindrod share, with ticker GND, was trading at R12.77 on June 12 when shareholders on the register got to receive one Grindrod Shipping share for every 40 Grindrod shares held. Grindrod’s share price tumbled 34% to R8.48 on June 13 after going "ex-distribution", but subsequently rebounded to trade at R9.44 on Tuesday. At R9.44 plus a fortieth of Grindrod Shipping share at R219, investors would have seen the amount per Grindrod share held a w...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.