Thursday 29 October, 2020

Barita shares rocket

File photo shows the Barita team at the company's annual general meeting in 2019.

File photo shows the Barita team at the company's annual general meeting in 2019.

Investors traded shares in Barita Investments 30 per cent higher during the week ahead of the new shares coming on the market.

The shares started the week at $59.55 and closed Thursday at $76.61. The rise in the price also came with heavy volume support. On Thursday 2.5 million units traded and 1.1 million units on Wednesday.

Barita raised $13.5 billion in its latest additional public offer. The company shares total 825 million issued to shareholders but it created subscriptions for 260 million additional shares.

When additional shares are created, usually this results in the reduction in the stock price to reflect the dilution effect. The view is that investors are trading up the stock ahead of next week’s addition of new shares.

“The company anticipates that the new ordinary shares will be listed and begin trading on the Jamaica Stock Exchange by September 30, 2020,” said Barita in a notice to shareholders.

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