Shares of SANVO CHEMICALS (SEHK: 00301) have climbed more than 3% today, extending a remarkable rally that has seen the stock surge over 230% since the beginning of June. At the time of writing, the stock is up 3.34% to HK$6.19 with a turnover of HK$4.92 million.
The movement follows a company announcement regarding a significant share sale by a major shareholder. The board was informed by controlling shareholder Sanvo Fine Chemicals Limited (SFCL) that it has agreed to sell approximately 37.636 million shares, representing about 8% of the company's total issued share capital, through a placing agent on a best-efforts basis.
Furthermore, SFCL has agreed that, subject to market conditions, it may sell an additional 42.341 million shares, equivalent to roughly 9% of the issued share capital, also via a placing agent on a best-efforts basis. The company's board has stated that it does not anticipate the proposed share sales will have any adverse impact on the group's business operations or financial position.
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