Hong Kong's securities regulator advised investors and shareholders to "exercise extreme caution" when dealing with the shares of Pak Tak International (HKG:2668), as the high concentration of shareholding in the company to a small number of stockholders could lead to volatile share prices.
The findings of an investigation conducted by the watchdog suggested that 25 shareholders held 3,482,520,950 shares in the securities investor, representing 74.41% of its total issued shares as of April 19.
Coupled with 980 million, or 20.94%, shares held by a substantial shareholder, they cornered 95.35% of Pak Tak International, the regulator said and the company reported Monday.
As a result, other shareholders only held 217,479,050 shares, or a 4.65% stake in the company, according to the report by the watchdog.
Shares of the company closed over 6% lower on Monday.
Price (HKD): $0.46, Change: $-0.030, Percent Change: -6.19%
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