Home Listing method AYO tanks linked to Iqbal Survived 99% on JSE – before ‘miraculous’ recovery

AYO tanks linked to Iqbal Survived 99% on JSE – before ‘miraculous’ recovery


Iqbal Surve testifying during the judicial inquiry commission on the public investment company on April 02, 2019.

  • On Tuesday, AYO Technology Solutions’ share price opened at R3.50, before falling to just 3 cents.
  • A single trade for 100 shares triggered the collapse, and the company said it was investigating the transaction.
  • Before the end of trading, two trades took the stock price down to R3.50.

Shares of Iqbal Survé-linked IT group AYO Technology Solutions fell 99% in Tuesday’s trading.

The shares started the day at R3.50 before dropping to 3c minutes after the market opened following a single trade of 100 shares. This left the company valued at just R10.3 million.

AYO spokesperson Kaz Henderson said the company was “aware of a transaction that took place and is investigating it with the JSE.”

According to market analyst Anthony Clark of Small Talk Daily Research, the crisis indicates that the market has no interest in the company’s shares.

He said the bid-ask spread – the difference between the price at which you can buy a stock and the price at which you can sell it – shows how unpopular AYO is.

“The fact that the bid-ask price is 11 cents against R3.43 is an explicit indication that the market has no incentive to buy the stock.”

Clark speculated earlier Tuesday that the company was likely to come into the market to ensure the price didn’t drop 99%.

“It usually happens that way. Whenever the share price of a company associated with Iqbal Survé drops very sharply, they seem to have a miraculous run towards the end of the day, so as not to look too damaging. in terms of mark-to – stock market valuations.” It is an accounting method used to measure the value of assets based on market prices.

Just after 4:00 p.m., the stock rose to R3.50 after two trades of around 2,400 shares.

This brought the company’s market cap down to around R1.2 billion – still a far cry from the R14.7 billion market cap it had when it was listed on the JSE in December 2017.

At the time, the Public Investment Corporation invested R4.3 billion in the venture, an information technology company from Survé’s Sekunjalo stable. The PIC paid R43 a share for a 29% stake in the company.

The PIC has since taken legal action against AYO to force it to return the entire investment plus interest. AYO opposes it.

Besides a calamitous collapse in its share price, its JSE listing was marred in other ways. Two years ago, the JSE fined it R6.5 million for publishing a number of clerical errors in its 2018 interim results, and it subsequently disqualified two former members of the board of directors of the IT group to act as directors of listed companies for five years. to these errors.