Vista Alegre shares soar by 7% after cancelling €17 million share floatation
Shares in Portuguese fine china and crystal producer Vista Alegre rose by 7% after the company announced it was cancelling a share floatation valued at €17 million.
The capital call was cancelled because the market conditions are less than favourable at present.
Share gained 6.92% in value to €1.39 recovering part of their value lost last week when accumulated losses stood at 24%.
Some 4,500 Vista Alegre shares changed hands on Tuesday morning — higher than the usual average of 1,180 shares transacted daily over the past six months.
The company had planned to float over 21 million Vista Alegre shares on the market before cancellation.
“Despite various national and international investors attending recent roadshows, because of adverse international market conditions of late, the distribution of shares was not made” stated Vista Alegre on Tuesday morning.
According to news site ECO, given the failure to complete the share floatation operation, the holding company Visabeira will now evaluate alternatives to a Public Sale Offer (PSO) such as a Public Subscription Offer of new company shares to raise finance which could be in the order of €17 million.