September 26, 2023 (MLN): The share price of Pakistan Hotels Developers Limited (PSX: PHDL) has experienced a surge of 207.19% in just the last 20 trading sessions.
The dramatic price increase, from Rs77 on August 29 to the closing price of Rs236.54 today, has left market analysts and investors baffled.
The company's management remained silent about the unusual price movement until September 22 when they issued a formal notice to the Pakistan Stock Exchange (PSX).
In the notice, PHDL stated that they were not aware of such a matter or development that may have resulted in the increase in market share price and volume.
They also said that, while the company has been approached by potential buyers, from time to time, interested in their hotel property, none of them materialized to any offer.
However, on September 25, just days after rising concerns in the market over the price surge, PHDL issued another notice that added a layer of intrigue to the situation.
According to the notice, a potential buyer named the SIUT had reached out to the company through a letter dated September 23 and expressed interest in conducting due diligence of the hotel property documents.
PHDL has a scheduled board meeting for September 27, where they plan to discuss the agenda related to SIUT's inquiry.
The timeline of events surrounding PHDL's share price surge has raised numerous questions and sparked speculation among market participants.
Some have expressed concerns about the timing of SIUT's inquiry, just days after the company's initial notice to the PSX.
