Shares of Magnit fell after the decision to transfer them to the third quotation list of the Moscow Exchange

Securities of “Magnet” fall for the second day in the course of trading on Mosbirzhe. Today at 11:00 they fell by 5.4% (up to 4181 rubles apiece), at 12:20 they continued to decline by 3.22%. Yesterday the quotes fell by 4.6%. The decrease began after the announcement of the Moscow exchange about the transfer of shares to the third quotation list.

From May 25, the Moscow Exchange will lower the listing level of Magnit and transfer the company’s shares to the third level of the quotation list. Now the company’s ordinary shares are included in the quotation list of the first level. The stock exchange transferred the issues of Magnit’s bonds from the first level to the second.

On December 31, 2022, Magnit’s free float was 66.8%. Magnit shares have been traded on the Moscow Exchange since 2006.

As reported by the Moscow Exchange, the changes occurred “due to the organization’s failure to eliminate the violation of corporate governance within the time period established by the exchange.” What kind of violation is in question, the Moscow Exchange did not specify.

In BCS assumedthat the reason may be the lack of reporting for 2022. In addition, last year, Magnit failed to collect a quorum at the shareholders’ meeting, where the issue of dividends was to be discussed.

Anastasia Larina