2023-10-20 07:16:53
Shares of the technology holding VK fell by 17.42% – from ₽666 to ₽550 per share at the beginning of trading on the Moscow Exchange. However, then the decline slowed down and as of 10:12 Moscow time it was 4%, quotes recovered to ₽639.8 per security.
On Friday, October 20, the Moscow Exchange resumed trading in VK securities after an almost month-long break. The company previously “moved” from the British Virgin Islands to a special administrative region on Oktyabrsky Island in the Kaliningrad Region. Because of this, operations with VK receipts were stopped as of September 21. For private investors, the last day when transactions with receipts could be made was September 18. Trading on October 18, the company’s receipts ended at ₽666 per share.
After the “move”, it is not depository receipts that are traded on the Moscow Exchange, but shares of a technology holding company. The ticker remained the same – VKCO. However, the name of the company has changed – MKPAO “VK” instead of VK Company Limited.
The Moscow Exchange announced that it will resume trading in futures for shares of the VK company (formerly VK Company limited) from October 25.
The resumption of trading a month after the suspension is expected news, and the first day of trading may be especially volatile, noted analysts at BCS My Investments. Experts recommend selling VK papers given weak profitability in the first half of 2023 and risks to profits in the second half of 2023.
Analysts at the My Investments project maintain a cautious view of the company, as there are still risks for minority shareholders associated with maintaining a dual share structure and the lack of a clear strategy for creating shareholder value.
The VK company (Mail.ru Group) began its activities in 1998 with the mail service Mail.ru. The Mail.ru Group company itself was founded in 2005. It held an IPO in November 2010 on the London Stock Exchange. In July 2020, trading of VK GDRs began on the Moscow Exchange.
The VK technology holding develops communication and entertainment online services in Russia and abroad. As of the end of June 2023, users of VK services accounted for more than 95% of the monthly RuNet audience.
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