Hong Kong Securities Regulatory Commission warns that the equity of PAK TAK INT'L (02668) is highly concentrated! It has already plummeted by 66% this month.

On September 16, PAK TAK INT'L (02668) announced that the Hong Kong Securities and Futures Commission recently inquired about the company's equity distribution. The inquiry results showed that on September 4, 2024, 25 shareholders collectively held approximately 3.4825 billion shares of the company, equivalent to 74.41% of the company's issued share capital. Including the 980 million shares (20.94% of the issued share capital) held by a major shareholder of the company, the total equity amounted to 95.35% of the issued share capital. Therefore, the company only had about 217.5 million shares (4.65% of the issued share capital) held by other shareholders. It is worth noting that since reaching a new high in recent years on August 30, PAK TAK INT'L's share price has been continuously declining, with a cumulative drop of 66% as of the close on September 16. The announcement stated that the closing price of the company's shares rose by 1,941.7% from 0.048 Hong Kong dollars on December 1, 2023, to 0.980 Hong Kong dollars on September 4, 2024. After the closing on December 1, 2023, the company announced the completion of a placement, selling a total of 780 million new shares at a price of 0.019 Hong Kong dollars per share to at least six underwriters. After the close on August 29, 2024, the company announced its interim results; for the first half of 2024, the company had a attributable loss of 36.8 million Hong Kong dollars from equity shareholders, compared to a loss of 74.1 million Hong Kong dollars in the same period in 2023. On September 13, 2024, the company's share price closed at 0.485 Hong Kong dollars, an increase of 910.4% from the closing price of 0.048 Hong Kong dollars on December 1, 2023. It is reported that PAK TAK INT'L is mainly engaged in the production and distribution of men's, women's, and children's knitwear for export to the Americas and Europe. The company's subsidiaries include IDT INT'L Holdings Limited and Pacific Trends Limited. Through its subsidiaries, the company also provides administrative services. The announcement pointed out that due to the high concentration of equity among a small number of shareholders, even a small amount of shares being traded could lead to significant fluctuations in the company's share price. Shareholders and prospective investors are advised to exercise caution when buying or selling the company's shares.