The Straits Times / The Business Times News on AsiaPharm

Institutional investors buy strongly

But on the sales side look out for AsiaPharm shares on heavy sales by substantial shareholder IPC, says ROBERT HALILI

By Robert Halili - Nov 08, 2004
The Business Times

On the sales side, the shares of AsiaPharm Group are looking fairly valued based on heavy sales by former substantial shareholder IPC Corporation, which reduced its stake in the pharmaceutical products manufacturer to below 5 per cent last week following the steep rise in the share price since listing in May from 39 cents per share.

AsiaPharm Group

IPC Corp took advantage of the steep rise in the share price of pharmaceutical products manufacturer and distributor AsiaPharm Group Ltd since listing in May with the sale of 5.5 million shares on Nov 4 at an estimated price of 68 cents each. The trade reduced its direct interest by 22 per cent to 19.3 million shares or 4.8 per cent of the issued capital. The price fetched from the disposal was 74 per cent higher than the stock's trading debut price of 39 cents.

The disposal was made a week before the group's third quarter results announcement on Nov 8. Investors should trade with caution on this stock as the sale, which reduced IPC Corp's interest to just slightly below the notifiable level, points to more disposals by the former substantial shareholder in the near-term. The counter closed at 67.5 cents on Friday.

- The writer is managing director of Asia Insider Ltd