Shares digital

Having only joined the junior market at the start of the year, shares in investment tiddler designcapital (DESC:AIM) have already been suspended, pending an announcement to clarify its issued share capital and the net placing and subscription proceeds further to its admission to Aim.

The company’s share price has not moved from its 10p level since the group’s admission on 21 January. designcapital, which has a market value of £6 million, says its objective is to acquire holdings in luxury design-related companies and businesses it believes are under-capitalised.

At the time of its IPO, designcapital said it planned to consolidate the market and that one of its key shareholders, Luxadvor, would be investing £3.4 million in the company over the next year. Luxadvor is owned by Russian industrialist Sergei Pugachev. HB Corporate is designcapital’s nominated adviser and broker.

Shares says: Not a good start for the company. AVOID