The Guardian Capital's (former Watapota) rights shares (WAPO.R) yesterday completely staggered the Colombo bourse by its high volatility.
The rights started off trading at Rs.2500 levels in the morning, and suddenly (around 1.50 pm) a block of 21.6 million rights traded at Rs.10.30 per share, contributing Rs.223 million to the day's turnover.
Filing a disclosure to the CSE, Carson Cumberbatch said 99.4 percent of Watapota rights shares allotted to Carson being its parent company were sold to Guardian Investment Trust Plc, which is also a subsidiary of Carson.
Amazingly a few minutes after the deal, shares rebounded again and traded at Rs.400 levels. The share closed for the day at Rs.500. Despite being a shell company, Watapota has been among the top shares that created market sensation in the recent past. At one time, Watapota shares were trading at Rs.10, 000 levels.
Watapota, after re-branding itself under Carson as Guardian Capital, dispelled talk that Carson would dispose the shell company to an interested party. Later it claimed it was going for a massive 75 for 2 rights issue at Rs.20, to raise Rs.503 million for strategic investments.
Subsequently, Watapota announced that part of the rights issue money will be invested in Free Lanka Holdings, in a private placement deal.
Parent company Carsosn Cumberbatch holds 87 percent of Watapota that represents 581, 950 shares. The net asset value of a Watapota share is Rs.21.25.
source - www.dailymirror.lk
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