Quindell share price leaps as it issues its final 100,000 shares
Shares in troubled insurance claims processor Quindell bounced by more than six per cent to more than 55p in early trading as it listed its final tranche of 101,586 ordinary shares.
In a statement to the stock market today, the company said the shares will be admitted to trading on the small-cap Aim market on 11 December. The tranche is a remainder of the first third of the deferred equity consideration payable to the sellers of software company iter8, which it bought in April last year.
The rise in share price will come as a welcome relief to Quindell's management, who have grappled with a series of catastrophes over recent months.
Shares have shed nearly 90 per cent of their value since April, following a report by US short seller Gotham City, which published a 74-page dossier accusing Quindell of having "magical… paper profits".
Last month chairman Rob Terry and non-executive director Steve Scott stepped down after the company's broker, Canaccord Genuity, resigned and Fidelity, one of the world's largest investors, cut its stake in the company in half.
Although the rise in share price suggested investors regarded today's share issue as a good move, it is likely to limit Quindell's future scope to raise funds quickly, should it need fast access to capital.
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