The trading in shares of Newmark Security (LON:NWT) should be more liquid now that a major shareholder has halved its stake in the company to 14.65%.
Members of the Reid family placed 65.6mln Newmark shares with new and existing institutional investors at 2.6p a share, and the family issued a statement that it has “every confidence in the strategy of Newmark and the management of the company”.
As such, the family said it is “not inclined” to sell any more Newmark shares over the short to medium term.
Newmark’s chief executive, Marie-Claire Dwek, said: "I believe this is a positive development for the company as it improves both the liquidity of the shares and builds upon our existing institutional shareholder base."
Not surprisingly, shares in the market readjusted themselves to 2.6p, the price at which the shares were placed. Newmark shares closed at a mid-market price of 3.03p last night.