The amazing effects a relisting can have on the company’s share price can currently be witnessed at the example of Swedish small cap company Opus.
On June 28th. announced that it has been cleared by Nasdaq OMX for its listing on their small cap list as of July 2th 2013. Opus has announced its intention to do so many months ago and changed listing from First North. Back then, the Opus share was trading at below SEK 6. Today, the share is trading at around SEK 8,50, i.e. around 50% above the level seen before the relisting was officially confirmed.
Opus is a great company and certainly deserves the revaluation. The company received an interesting contract in Virginia in July, which contributed to the positive newsflow, however, this contract as such was certainly not worth a revaluation by >50%.
Much more importantly, it is the fact that bigger funds are finally able to invest in the company and the credibility the company has gained following the relisting that has pushed the share higher.
We have high hopes that a similar development will take place in G5 Entertainment. The app developer and publisher has announced in early 2013 that it will change listing from Aktietorget to Nasdaq OMX small cap. The exact date of the relisting is not known yet. We believe it will be sometime during early Q4 2013.
We are convinced that this move will lead to a significant revaluation of the G5 share.
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