Early education company Evolve asked to explain sharp rise in share price

The early education operator, Evolve, has been asked to explain a sharp rise in its shareprice by the NZX.

children sit on the mat at an early childhood centre

File image.
Photo: RNZ Insight/John Gerritsen

The company’s shares jumped more than 28 percent last week, from 9 cents to 12 cents per share, ahead of a trading update issued this morning.

NZX rules require listed companies to disclose any price sensitive information as soon as possible.

Evolve said it had complied with those rules and last week’s price changes were coincidental.

Evolve chief financial officer Edmund Mah said the company had “no reason to believe that its market update of today had lost any confidentiality”.

The company forecast nine-month operating earnings between $14.4 million and $14.8m.

Evolve got close to $12m in wage subsidies during the first pandemic lockdown, but said its New Zealand centres had bounced back and its Australian centres were trading well.

It said it was now looking at buying childcare centres worth about $20m, which would be funded in part by the proceeds from its $83 capital raise and additional cash generated from normal trading.

Published at Mon, 09 Nov 2020 05:50:28 +0000
Source: Early education company Evolve asked to explain sharp rise in share price