Listed dealer group DKN Financial put a number of shares up for sale today, having accrued a bank of available stock after it encouraged smaller share holders in January to part with their holding in the company.
On January 17, the Melbourne based company asked shareholders with less than a marketable parcel of shares – under $500 – to sell up, as they were becoming an administrative burden to DKN by costing them too much in share registry, printing and mailing fees. To encourage them to sell, DKN offered to cover all of the small shareholder’s brokerage costs.
It was estimated in January that over 600 DKN shareholders held parcels of ordinary shares worth less than $500.
According to DKN, 471 of these shareholders participated in the sale, which was managed through a facility established with the Australian Stock Exchange.
These shareholders held a total of 146,070 shares, representing 0.3 per cent of DKN’s issued capital.
All of these shares went up for sale today through the broker JM Equities.
Money collected from the sale will be given to the 471 small shareholders who parted with their stock by 21 March 2005.
The sale of the small shareholdings will result in DKN having approximately 1,470 shareholders.
