AIQ LIMITED (LON:AIQ) Temporary Suspension of Trading, Our Take on AIQ

 

Further to the Company’s announcement at 11.27 a.m. on 11 January 2018, the Board of AIQ Limited (LSE: AIQ) notes that the Company’s share price has continued to rise.

The Board believes that such a rise is unwarranted in light of the fact that the Company has been trading for only three days and there has been no material change in its business since the publication of the Company’s prospectus on 4 January 2018.

Consequently, the Board is taking the prudent step of asking for its shares to be suspended from trading in order for an orderly market to be facilitated.

The Company will provide an update on the date of its shares recommencing trading in due course.

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Conclusion: 

What can l say, AIQ Limited (LSE: AIQ) IPO only last Monday (Jan 8th, 2018) on the London Stock Exchange, UK at a subscription price of 8 pence per subscription share. Following Admission, the Company had 50,000,000 ordinary shares in issue. The company raised gross proceeds of approximately £4 million (before expenses)

 

Stay with me as this is all normal and fine, YET something very strange occurred on the second day of trading  www.share-talk.com/share-news/aiq-limited-aimaiq-limited-admission-to-trading-and-first-day-of-dealings/when we put published this article. The share price was sitting at 9 pence, but with very little volume the SP started to climb north and within the hour had touched 100% gain.

 

When the markets close on Tuesday 9th Jan 2018, AIQ Limited (LSE: AIQ) had gained 300%, now let’s keep this real, we are talking about a cash shell with £4 million (before expenses).

The correct figure is £3.6 million cash in the bank, read on.

 

 

Very few across social media had noticed the share price movement and only a few took to Twitter.

 

Wednesday 10th Jan started just as crazy, it was obvious from the share price movements on the previous trading day that market maker had limited stock and sure enough come 09:42 am, the MMs tried to close down the buys v sells. They opened up the spread to 180.00%, yet the correct price to buy was 128p. As l said, my week was following this story unfold.

 

 

 

 

Now the question people should be asking, why no speeding ticket, how can a share rise 460% and the Exchange, Company not make an market announcement? Come11.27 am (GMT) the  Share Price Movement RNS was released and as you can see from the image above, the markets had already lost control by then.

Remeber we are talking about a share (LSE: AIQ), which commenced trading on the London Stock Exchange’s Main Market on 9th January 2018 at 8 pence per ordinary share.

 

 

In this RNS we see the net proceeds of £3.6m confirmed (after expenses)

 

Thursday 11th Jan The markets had lost it by now and l am sure a few market makers paid a heavy price trying to close down the vulnerability of the share movement. Why would the MMs open up a spread of 250%, yes you heard correctly this was the week that was AIQ LIMITED. 

By now only the day trade, punt money was flowing in and out and at one point the share price dipped. As soon as new money came in, the SP headed north again, with the markets play with the spread, this is usually a good indicator that the MMs are short of stock.

 

Friday 12 January The Board believes that such a rise is unwarranted in light of the fact that the Company has been trading for only three days and there has been no material change, now that is an understatement. The few who caught this early and made a few quid, good luck to you. For the market makers, fun week for you lot.

What lies ahead for shareholders? One thing is for sure, the week that was AIQ will not be forgotten for a long time, I wish all the holders good luck and it is a story l will follow over the coming months.

 

@ABMckinley

 

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