Is the share price too high? Wangfujings controlling shareholders increase plan postponed for one year

category:Finance
 Is the share price too high? Wangfujings controlling shareholders increase plan postponed for one year


After the Spring Festival, affected by the epidemic situation, most of the A-share companies experienced a serious decline, and Wangfujing stock price fell to a low level of 11.48 yuan / share on February 4. Then, on February 10, Wangfujing issued a plan to increase its holdings, saying that the controlling shareholder ShouLv group decided to increase its shareholding based on its confidence in and recognition of the companys future development, with an increase range of no less than 0.5% of the companys total share capital, No more than 2% of the total share capital of the company, and the period of increase is from February 11 to August 10, and there is no price range for the increase.

Wangfujing more than half of the time, issued an increase plan progress announcement. According to the announcement, during the period from February 11 to May 11, capital travel group increased its holdings of Wangfujing by 813110 shares with its own funds, accounting for 0.1% of the total shares issued by Wangfujing, with an average price of 12.13 yuan per share. That is to say, after May 11, the controlling shareholders basically stopped the increase of Wangfujing shares. Wangfujing stock also began to rise rapidly after the middle of May. The closing price of Wangfujing stock on May 12 was still at the lower position of 14.29 yuan.

Although the number of completed increase is small, the floating profit of Wangfujing controlling shareholder is still good. Based on the 813100 shares increased by Beijing capital travel group with an average price of 12.13 yuan, the total increase cost was 9.8629 million yuan. Based on the closing price of Wangfujing on August 10, which was 62.28 yuan, the increase was 463%, and the overall floating profit was 40.78 million yuan.

The stock price continued to rise rapidly and remained at a high level, which may be the important reason why the controlling shareholders of Wangfujing did not continue to increase their holdings.

After the high price of Wangfujing, some shareholders and executives choose to reduce their holdings. Among them, Li Jie, a senior executive, reduced 1700 shares of Wangfujing shares on July 14, with an average price of 70.16 yuan. After the reduction, his remaining shareholding was 5200 shares. In addition, on the evening of July 13, Beijing jingguorui state-owned enterprise reform and Development Fund (limited partnership), which originally held 7.5% of Wangfujings shares, issued a plan to reduce its holdings of no more than 15.525 million Wangfujing shares, no more than 2% of the companys total share capital. Moreover, jingguorui fund acted quickly, and announced the 1% reduction of Wangfujings shares on August 7 The reduction price range is between 55.56 yuan and 63.88 yuan.