Email6 Aug 2014 21:25
From Derrick Wong a while back...
But the liquidity is still not attracting anything and the spread puts people off...
On selling of shares from seed investors, these are their intention and we also think it's good for the company as the free flow of the shares of the company in the market is very low. Without the shares being traded freely in the market, which previously more than than 90% held by China investors, the market will not appreciate our company, which can be evidenced by very low PE and shares without much liquidity. This is a 'chicken and egg' problem, as we need liquidity before the shares price can be moved back to the reasonable level. We have been through many roadshows with institutions/PCB who shared the same concern, even they like very much interest on the company like you. Through this exercise, we increase many UK institutions and PCB, and cleared out those shares hold by the China seed investors who have no interest to hold it for long time, which we believe is a win-win situation to us in long term.
As mentioned below, we will have an announcement sooner early next week to address these concerns as that the market understand this entirely and we believe it will create the confidence to the market as there will be no overhang shares in the market and the share prices traded before would be the lowest based on our view.
Hope the explanation above can give you more comfort as these are done strategically with longer term plan. We are happy to meet you durning the trading update next time, ie Sep/Oct for our FY14 half year interim review.
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