Reinet’s share rockets almost ninefold, but shareholders are left poorer
The company did a one-for-10 share consolidation and the stock would have had to reach R300 to retain its closing price of R30
Reinet’s share price increased nearly ninefold to R265 on Wednesday morning from Tuesday’s R30 closing price — which actually left shareholders slightly poorer since the company did a one-for-10 share consolidation.
For Reinet’s share to have retained Tuesday’s closing price, it would have to reach R300 on Wednesday. The highest it had traded at by 9.20am was R299.
The share's JSE code was changed to RNI from REI following the consolidation.
The investment holding company said in a statement on Wednesday that it would pay R30 cash for each of the nine or less REI shares remaining in investors’ stockbroking accounts following the conversion to RNI shares.
Reinet advised shareholders in its interim results released on November 16 that it intended to replace every 10 of its shares with a higher-value single share.
The group’s main holding is British American Tobacco (BAT), which accounted for 67% of its portfolio at September 30.