Picture: ISTOCK
Picture: ISTOCK

Copenhagen — A small Danish property company is starting 2017 as the biggest winner on the Copenhagen stock market, surging as much as 930%.

But there’s a problem: management has no idea why and is trying to talk sense to investors.

Victoria Properties, which had focused on German real estate, on Monday had to remind the market that its equity is gone, responding to a surge in its share price as big as 195% in early trading.

"The management in Victoria Properties wants to make clear that there has been no change in Victoria Properties’ economic conditions and that no plans have been disclosed regarding the company’s future strategy," CEO Rasmus Bundgaard said in the stock-exchange announcement. "The company’s equity is therefore still equal to about zero kroner."

Though the announcement seemed to spur some afterthought among traders, with Victoria’s shares paring gains, the stock was still up 118% at 22.90 kroner just after noon in Copenhagen.

That values the penny stock at 107-million kroner ($15.4m), after its market value grew by 661% this year.

The second best-performing company in Denmark’s all share index is regional lender Ostjydsk Bank, which is up about 68%.

Victoria’s shares had fallen for six straight calendar years before 2017, so even after January’s stunning gains, the company is still worth about 96% less than at its 2006 peak, which was one year before Denmark’s property bubble burst.

Bloomberg

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