“By listing ofi as a pure play, standalone entity or attracting new investors in the private market, we believe most of these factors that are currently depressing the share price could be satisfactorily addressed,” says Olam in response to why it is exploring an initial public offering (IPO) for ofi after the company is selling Olam Agri and monetising its remaining assets.
Olam Group’s current share price does not reflect its intrinsic or fair value, says the company in its response to shareholders’ questions ahead of the company’s extraordinary general meeting (EGM) to be held on July 4. These questions were submitted by shareholders by June 26. Shares in Olam closed at 94.5 cents as at June 27.
According to Olam, the share price discount is likely due to several factors including a conglomerate or multi-business discount and a lack of adequate free float. The latter has also resulted in a lack of analyst coverage and “effective price discovery”.
