A major shareholder in Leonteq has pulled out – a bad omen for the crisis-hit derivatives specialist. Where does it stand now?
On Thursday, Leonteq founder and CEO and chairman Pierin Vincenz presented a unvarnished picture of the company – as well as a raft of measures to attempt to shore up the Zurich-based firm.
What stockholders have made of the measures was disheartening for the firm: Leonteq shares fell as much as 8 percent. A surge in volume towards the end of the trading day gave rise to speculation that an institutional investor had offloaded a larger stake.
Greber Takes in Mea Culpa
Now, «Finanz und Wirtschaft» (in German) has reported that the investor selling shares was Veraison. The investment firm, run by Gregor Greber (pictured), sold 4.9 percent of Leonteq's shares at 31 Swiss francs.
Greber, who was present during Leonteq's mea culpa results conference on Thursday, didn't comment.
The transaction is likely to fall under securities disclosure law, which means it will surface in coming days at the Swiss bourse SIX.
Stock Undervalued?
As Leonteq fights to win back investor and client trust and return to profitability, at least one executive has attempted a show of confidence.
Lukas Ruflin, co-founder and vice-chairman of Leonteq's board, bought shares to lift his stake to 7.4 percent. Ruflin cited low valuation for the move.
Greber also cited valuation when he began building Veraison's more than 5 percent stake last summer. Now, with Leonteq's future uncertain and the stock down 40 percent, Greber has pulled out.
Uncertain Outlook
For Leonteq, the exit of Veraison – at a hefty loss – is a bad omen. To be sure, the company itself isn't sure it can turn a profit this year.
In addition, Leonteq is grappling with operating pains in its technology platform and long lead times for partnerships with banks to materialize.
What Now For Singapore Fintech Push?
In May 2016 Leonteq launched its Teqlabs innovation lab facility in Singapore and wasted no time in sealing a significant deal with an influential government agency.
The Singapore-based Teqlabs was opened in partnership with Singapore’s Economic Development Board (EDB). The innovation lab was said to have been established to foster its fintech research and development for the benefit of the local financial services sector.
But with the stock plunging and numerous cost reductions to come what is the future of the Singapore innovation lab?
