The Central Bank has uncovered a scheme to manipulate the shares of JSC “Live office”, thanks to which the company attracted funds from institutional and private investors on the Moscow exchange. According to the regulator Thursday, 20 October, in July 2013, the company placed on the stock exchange in the “Market of innovations and investments” 33% of its shares in excess of half a billion rubles. Price per share amounted to RUB 129 Agent and the organizer of the transaction was a company Eastland Capital. Underwriters-co-organizers — IK “Finam” “ALOR invest”, IK “Veles the Capital” RFK-Bank, IK “Income”, “KIT Finance”.
As found in CB, the main buyers of shares in the IPO were companies related to OAO “Live office” — company “Priboy”, LLC “Modern” and “Top”. These companies bought shares on borrowed funds, received from an offshore company. OJSC Zhivoy ofis” actually returned this loan through related persons during the day. Thus, the placement, despite the official statements of the Issuer, has not led to real to raise funds,” says the regulator.
In a press-service of the Central Bank announced that the scheme of placing of shares due to private deleveraging detected for the first time. With access to stock markets, the company has for several years attracted private and corporate investors. Two investment companies that participated in the placement, reported that the action “Live at home” after placing bought their clients.
After the IPO with shares of the company during the whole of 2014 was held manipulation, which, according to the Bank, were committed by the two groups of individuals associated with a “Living office.” The scheme involved individuals, the company who bought shares at the IPO, representatives of subsidiaries of “the Living office”, as well as management IK “ELTRA”. Their share accounted for only 56% of the trading volume of shares of JSC “Living house”, the share of the Issuer’s affiliated companies accounted for 87% of all exchange transactions.
Simultaneously with creating the appearance of active market of shares of the additional issue was realized to third-party investors, notes the regulator.
The company held a significant share in the market of stationery in Saint-Petersburg and Leningrad region, it was serious business plans, sound financial performance, therefore, some clients felt that its shares will rise, says the President — CEO of “Finam” Vladislav Kochetkov. According to him, therefore, the structure of “Finam” gave a loan to the subsidiary company “the Living office” of “Spence” in the amount of 150 mln Loan was granted bail of shares traded on the exchange, and guarantee of top management of the company. Debt the company has not returned, now “Finam” is trying to recover it in the courts. “In respect of “Spence” entered bankruptcy proceedings, since in addition to the loan in the “Finam” the company has attracted a loan of 100 million rubles. at Fundservicebank”.
In February 2015, the Central Bank introduced a temporary administration Fundservicebank, and in April, the Central Bank announced the allocation of 66 billion rubles for the rehabilitation of Fundservicebank.
“The living office” and its organizations are now actually in the verge of bankruptcy. “We believe that there are signs of deliberate bankruptcy of the company, and we will defend our position in court” — said Kochetkov.
On the date of the last financial statements according to IFRS (30 June 2015) the company is a “Living house” showed a net loss of about 38 million roubles, 20 Oct 2016 its shares on the Moscow exchange traded at RUB 3.7 V, which is more than 30 times below the offering price.
As follows from the materials of the company, JSC “Living office” at the meeting of shareholders on 25 October plans to consider the question of liquidation of the company and appoint a liquidator.
The main owners of “the Living office” — its General Director Valery Parfenov (32,2%) and Chairman of the Board of Directors Alexander Khomylev (29.1 percent), according to the list of affiliated persons March 31, 2016.
By results of check of the Bank of Russia took a decision to cancel issued by JSC “IK “ELTRA” license, and also recommended that Moscow exchange to consider delisting of shares of JSC “Living house”.
“The issue of the termination shares “Living office” will be considered by the Committee on the stock market”, — said the official representative of the Moscow exchange. According to him, under the listing rules, delisting takes place three months after the adoption of the relevant decision. He also noted that this is the second similar case, when on the recommendation of the controller is carried out delisting of the shares. The first case involved a violation of the disclosure requirements of JSC “PRIN”, shares of which will be discontinued at the end of October, reported on the stock exchange.
“In the case of delisting, investors will likely lose all money invested, but the actions of the regulator justified because it acts in the interests of wide circle of investors, which can also lose their money, trying to capitalize on the fallen in price actions “Live at home”, — said a top Manager of a large investment company.
The Bank of Russia drew the attention of the exchange for non-market pricing of a financial instrument, explained in a press-service of the Central Bank. Such a complex scheme for the organization of case has not previously been identified, said the regulator.
The Central Bank also said that the investigation in this case manipulation was initiated in the beginning of this year. “The reason was for the treatment of several major professional participants on the signs coordinated the activities of some of its customers. This scheme is the classic manipulation pump and dump (classical scheme stock market fraud where insiders hyping a certain action on rumors in hopes of making a quick profit. — )”, — stressed in the Central Bank.
The Central Bank did not specify what the damage from the manipulation could be caused by private investors who bought shares of a “Living house”. However, the regulator clarified that in case of occurrence of the information on the damage caused to natural persons, it will be sent to law enforcement authorities for consideration of a question on excitation of criminal case.
The company “ELTRA” has not received official notification of the Central Bank to revoke the license of thepromember, reported the press service of the company . “All official information will be provided after obtaining from the Central Bank of the Russian Federation official notification — note the “Ultra”. — Now experts of the company prepare the documents to challenge the decision of the Central Bank about revocation of license [in the case of confirmation of information]”.