Following the listing of subsidiary Yihai Kerry Arawana (YKA), Wilmar share price surged to a high of $4.70 before plunging to a low of $4.00 in October. The fall of Wilmar share price confounded plenty of investors as the market capitalization of Wilmar represented half of its value of holding in YKA at to the point of the IPO. This is indeed a very strange phenomenon!
Wilmar share price is prone to movement of the big boys because in FY2019 annual report, the number of shares held by public constituted only 28%. This means that the major shareholders have a major influence on share price movement. Indeed, Wilmar share price took a beating in August 2020 when shareholder Archer Daniels Midland, sold 170.5 million Wilmar at $4.40. In addition to that, ADM had entered into a stock-borrow arrangement in respect of its Wilmar shares in connection with its offering of US$300,000,000 zero coupon exchangeable bonds.