Olam's shares are down after share placement

Olam, one of the largest commodities trading and supply chain company in Asia saw heavy trading of its shares in Singapore's bourse today after major shareholder AIF Singapore Investments Limited and Dragon Orient Holdings Limited placed out their stakes in the company. After the placement, AIF's stake in the company is reduced to 7.67% from 8.33% and Dragon Orient will no longer hold any stake in Olam. This is the second time a substantial shareholder has pared down a stake in the firm. In March, Singapore's Temasek Holdings sold off its stake in Olam and this latest share sale caused Olam's share price to drop by 6 cents to end the trading day at S$1.65.

However, AIF have clarified that they will not proceed to sell anymore of Olam's shares within the next 90 days. Moreover this share sale seems to be a small stake sale and it should still imply that institutional investors still see further upside in this company.