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Stabilization measures for Ellos after listing – bank buys support shares

Danske Bank steps in.

Ellos Group took the step onto Nasdaq Stockholm on July 8 with a fixed introductory price of 60 Swedish krona per share. Now it appears that Danske Bank, in the role of stabilizing agent, has carried out support purchases of the company's shares to dampen a decline in the share price during the initial trading days.

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According to a press release, the bank has acquired just over 400,000 shares on five different occasions between July 10 and 20. During the first few days, the transactions were carried out at a price close to 60 Swedish krona, and then carried out at a level of 58 krona per share from July 16.

Stabilization measures are a regulated procedure in connection with stock market listings aimed at managing initial selling pressure. The agreement gives the bank a mandate to purchase shares on the market during the first 30 days to support the price, with the condition that the purchases may not be made at a price exceeding the introductory price in the offer.

ALSO READ: After the rejected billion-dollar bid – today Ellos enters the stock exchange

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Editorial Staff
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