The share price of STARK Corporation Plc (STARK) dropped by 20.83 per cent after the morning session ended on Wednesday to 1.52 baht per share with a transaction value of 3,217.7 million baht due to concerns about a big-lot transactions.
The company and its various holdings are involved in the manufacturing and distribution of electrical wires and cables in South East Asia.
The reason for the plunge in trade is that there were 24 big lot transactions with an amount of 1,732.15 million shares at an average price at 1.40 baht per share totaling 2,425.02 million baht.
There were also five big lot transactions in the foreign market (STARK-F) with the movement of 412.54 million shares totaling 577.55 million baht. The overall transaction value was 2,144.96 million shares which worth over 3 billion baht.
The trading price in big-lots was lower than the opening price at 1.60 baht and the closing price of Tuesday at 1.92 baht.
Earlier, STARK announced plans to expand its share distribution to minority shareholders (Free-Float). The distribution currently stands at 11.40 per cent but the company aims to reach a target of 20 per cent.
Chanin Yensudchai, the chairman of STARK, told Thai Enquirer that the company is continuing to increase the shareholding distribution to the minority shareholders.
“Our goal is to set STARK into SET50 along with other criteria in the future, as we want to stabilize the shareholder’s distribution to all institutional sectors,” Chanin said.
For the price movement in the market, Chanin said that the decline shouldn’t be a big concern as the transaction to increase the minority shareholders’ distribution was just the secondary placement.
STARK is one of the businesses viewed as a resilient business amid the coronavirus crisis because there has been a constant demand for the electrical wires and cables from the industry, Chanin added.