The Countrywide nightmare continues, with shares down almost 10% yesterday, following a fall on Friday of some 7%.
Yesterday they finished at 10.5p, according to the London Stock Exchange, which gave Countrywide a market capitalisation of £190.66m.
Yesterday’s closing price is only just above the 10p which subscribers paid for new shares in the fundraising call.
It was also the price at which shares were allotted to 13 managers last week, including executive chairman Peter Long.
There were two regulatory announcements to the stock exchange about holdings in the company yesterday. The first stated that Investec Asset Management has increased its stake from 5.75% to 12.50%.
The second revealed that major investor Oaktree Capital has reduced its stake from 30.13% to 18.28%. However, the percentage reduction may be partly due to the dilution of its shareholding as a result of the issue of new shares in the fundraising.
Yesterday evening, an insider told us: “Countrywide is on life support. If the biggest investor is bailing out, why should anyone else have any faith in the business?”