The first sell orders for shares of the Institute “Dr. Simo Milošević” appeared on the Montenegro Stock Exchange, priced at 100 euros per share. A total of 2,241 shares were offered, but there was no investor interest at this price. Only one transaction was executed, involving the sale of 19 shares at 38.99 euros, which represents a 9.99% increase compared to the last sale on Friday when shares were offered at 35.45 euros, according to Montenegro Stock Exchange representatives.
This continues the upward trend in share prices that began on December 23 last year. Prior to this, shares of the Institute had not been traded since April. As of yesterday, with the sale of 19 shares, a total of 114 shares have been sold since December 23, according to Montenegro Stock Exchange data.
“We have a growth trend that began on December 23 and continues to this day, with shares increasing from 20.02 euros to 38.99 euros. Before the December trading, the share price was 18.20 euros,” stated the Montenegro Stock Exchange, adding that one seller had even offered shares at a price of 154 euros, which is close to the nominal value.
Earlier reports from Vijesti revealed that a group of small shareholders, organized around the Montenegrin Association of Small Shareholders (CAMA), who hold about 16% of the shares, plan to start selling them at a price of 100 euros each. The state currently owns 56.4% of the shares, while the company Vila Oliva, owned by Žarko Rakčević, holds 27.4%. To have independent decision-making power and secure a two-thirds ownership, the state needs an additional 10.2% of the shares.
These developments followed a shareholder meeting on January 9, where the restructuring plan, which includes the sale of part of the Institute’s assets, was not approved. Rakčević, the largest minority shareholder, disagreed with this plan. It was announced that the General Assembly would meet again on January 21, and in the meantime, the government would attempt to align its position with Rakčević. Another dispute arose after the decision to raise 23.5 million euros through a capital increase was made during the same meeting.
CAMA representatives told Vijesti that if the state buys their shares on the stock exchange, it could acquire a two-thirds majority in the Institute, enabling it to approve the restructuring plan despite Rakčević’s opposition. The restructuring plan includes an investment of 106 million euros, with the state providing 64 million euros, while the remaining amount would come from asset sales and loans.
In related news, the Herceg Novi Municipal Assembly will hold an extraordinary session on Thursday, initiated by Jovan Subotić, president of the Novska List club and MP from the PES party, according to Novski Portal. The session will focus on the Institute Igalo and the restructuring plan, which is expected to be discussed at the shareholder meeting next Tuesday. Ivan Otović, president of the Herceg Novi Assembly, stated that no plan is perfect, but that consideration must be given to restrictions on state aid and EU guidelines. He also mentioned that government representatives, minority shareholders, and the Institute’s management will be invited to the session to clarify issues surrounding the land, asset sales, and the construction of a school in Igalo.
