Trading in the newly merged Sigma Healthcare Ltd–Chemist Warehouse entity has surged, with more than A$300 million worth of shares changing hands in the past 48 hours. Sigma shares climbed 3.4% to A$2.86 on Thursday morning, pushing the company’s market capitalisation to A$31.8 billion. The company is already up 3.09% in intraday today to $3.000.
The spike in activity follows the release of A$10 billion in shares for trading on Thursday, allowing Chemist Warehouse franchisees to reduce their holdings as the merged company makes its ASX debut. While selling pressure was anticipated, passive funds were expected to absorb some of the supply.
Sigma confirmed on Wednesday that its acquisition of Chemist Warehouse—structured as a backdoor listing—had been finalised. Shareholders of Chemist Warehouse received 45 cents in cash and 6.3 Sigma shares for each of their shares, with trading commencing the next day.
The Gance and Verrocchi families, who founded Chemist Warehouse, retain a 49% stake, but their holdings remain under escrow. A portion will be released on August 31, with the rest locked up until the following year.
Despite an earnings blackout, Sigma has authorised a Special Dispensation period from Thursday to March 13, allowing trading to proceed following the release of its prospectus.
With restrictions lifted, 37% of the company’s shares are now eligible for sale.