Dalekovod´s share price closed at HRK 0.63 today marking a 44.7% drop.
On the 1st of July Dalekovod´s share opened at HRK 1.04. The share closed at HRK 0.63 which marks a fall of 44.7%. In some moments, the share was trading at an all-time low of HRK 0.50. The fall was triggered by the news that a share capital reduction from HRK 247.2m to HRK 2.5m was approved at the General Assembly meeting, held yesterday. It was also confirmed that a reverse share split will be performed, by consolidating every 100 shares into 1.
As a reminder, after issuing an invitation for interested parties to participate in the financial restructuring of the company back in February, Dalekovod received only one offer and that in the form of a joint deal by Končar and Construction Line. The offer includes a cap hike ranging between HRK 150m and 410m by subscribing shares in three rounds, by cash payments, and/or contributions by entering rights (claims). As part of the deal, Dalekovod would first reduce their share capital from HRK 247.2m to HRK 2.5m in order to cover losses from previous periods. At this point the company would also perform a reverse stock split by consolidating every 100 shares into 1. Since the issuance of new shares will follow the stock split and since new shares will be issued at the nominal value of HRK 10 per share, the value of the cap hike basically amounts to HRK 0.10 per share at the moment. As expected, DLKV investors did not find the news encouraging.
It is fair to say that the last month and a half were turbulent for the Dalekovod´s shareholders. On the 21st of June Dalekovod opened at HRK 5.84, reacting to the news that the share capital reduction and reverse stock split might occur, the stock closed at HRK 2.37. Three days later the stock was trading at HRK 1.32. Today´s plunge marks a total decrease in share price of 89% since the 21st of June.
