LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
Shares of Hong Kong Forex retail forex broker KVB Kunlun Financial Group Ltd (HKG:8077) dropped more than 16% in value on Monday and Tuesday, following the company’s release of its Q4 and full year 2015 financial results at the end of last week.
While our initial report correctly indicated that KVB registered a 170% YoY jump in net profit in FY 2015, investors were much more focused on the top line at KVB during Q4.
Revenues at KVB came in at just HK$ 94.8 million (USD $12.2 million) in Q4, down 40% from Q3, as per the graph below.
Control of KVB was acquired last year by Chinese giant CITIC Securities, which bought a 60% stake in the company. CITIC attempted to buy out the remaining minority shareholders at HK$ 0.65 per share – the same price it paid to former lead shareholder Li Zhi Da – but the offer wasn’t taken up as KVB shares remained well above the HK$ 0.65 level and CITIC refused to budge and move its bid any higher.
With KVB shares back down to earth, now sitting at HK$ 0.89 after trading as high as HK$ 2.24 in the past year, it is certainly conceivable that CITIC may try to renew its bid and get 100% ownership of KVB.