By NZPA
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Wednesday 11th September 2002 |
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The commission will look into both the offer and allotment of Vertex shares after its initial public offering in June.
Vertex listed at $2.05 but its share price touched an all-time low of $1.14 today before closing down 10c at $1.20 on heavy trading.
Also in the spotlight is the trading of Vertex shares prior to the company's profit warning on September 4.
The company cut by 15 percent its forecasted six-monthly earnings before interest and tax (ebit) of $5.2 million, blaming poorer than expected sales and cost problems in its Hamilton-based Technical Injection business.
Its full-year ebit forecast of $11.2 million was cut by 10 percent.
Vertex is also being investigated by the Stock Exchange's market surveillance panel over whether Vertex complied with listing rules, such as sufficient disclosure.
A company presentation to brokers today was described as "unconvincing" by one broker, but Vertex managing director Paddy Boyle said the presentation had not contained any market sensitive information.
Richard Burton of Forsyth Barr Frater Williams said recently that investors were concerned Vertex was downgrading its forecasts only a few months after they had been made.
"Vertex had a forecast that was above what its traditional businesses made in the past, and it's the new part that they've been expanding into that hasn't performed.
"The other problem there is when you have a stock with 100 percent free-float like Vertex, there's no major shareholder. When all the shareholders want to get out at the same time it can mean the stock gets oversold," he said.
Vertex emerged from Carter Holt Harvey's plastics packaging business. Its most recognisable products include containers for Tip Top brand ice-cream and Fresh 'N Fruity yoghurt.
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