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Summary
- Shares of Renishaw Plc soared nearly 20 per cent to hit an all-time high value.
- Renishaw shares have already recognised a gain of more than 70 per cent in the past one year.
- Renishaw founders have expressed their intent to sell the stakes.
Shares of Renishaw Plc (LON:RSW), the Wotton-under-Edge-headquartered engineering firm, rallied nearly 20 per cent on Tuesday, 2 March, as the founders of the company expressed the intention to offload their respective stakes. The stock of Renishaw amassed a gain of 20 per cent in quick successions within an hour of market opening. Renishaw shares extended the gains in the wee hours of trading after starting over 14 per cent higher at the open.
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All-time high
With the massive single-session surge in the share prices, Renishaw shares registered a fresh 52-week high on the counters. According to the latest data available with the London Stock Exchange, the stock of Renishaw advanced as much as 19.83 per cent to a new 52-week high of GBX 6,950 (also the all-time high market price) from the previous closing price of GBX 5,800 apiece.
High-octane action
The stock of Renishaw started the day at GBX 6,645. Barring the appreciation in the share prices on 2 March, Renishaw shares have already recognised a gain of more than 70 per cent over the course of the last 12 months.
Notably, the stock has soared over 150 per cent to GBX 5,800 (1 March 2020) from the 52-week closing low market price of GBX 2,276, realised during the Covid-led market crash on 19 March 2020. With today’s surge in the share prices, Renishaw shares stand with a positive return on a year-to-date (YTD) scale.
A sharp volume in the shares of Renishaw was seen on the bourse on Tuesday. Up until 0910 GMT, more than 66,000 shares of Renishaw exchanged hands on the London Stock Exchange, translating into a total traded turnover of a little over £2.05 million, the LSE data showed.
Following the development, Renishaw market capitalisation crossed £4 billion. At the all-time high price of GBX 6,950, Renishaw hit a market capitalisation of £4.5 billion.
Founders wish to offload stake
Executive Chairman Sir David McMurtry and Non-Executive Deputy Chairman John Deer have indicated to sell their separate shareholdings in Renishaw with the board of directors, the company said in an exchange filing.
- The board of Renishaw has undergone and discussed various possibilities with the advisors.
- With regard to the said sale of shares, Renishaw has appointed UBS as the sole financial advisor and corporate broker.
- The founders, Sir David McMurtry and John Deer, alongwith certain persons connected with them, collectively own 53 per cent of the issued share capital of Renishaw.
- Obliging the vote of other shareholders of the company, the board of Renishaw has unanimously decided to launch and investigate the formal sale process.
With time, the interested parties could be contacting UBS alongwith their proposals. The company has stated that neither the founders nor the company are engaged in any discussion with any potential acquirer, as on the date of announcement of sale, 2 March. All the concerned suitors will be required to enter into a non-disclosure and standstill agreement with Renishaw on the conditions that will be satisfactory to the board of directors.
