Shares of Danish facility management company ISS A/S fell sharply following news that a unit of the company was involved as property manager during the renovation of the Wang Fuk Court residential estate in Hong Kong, where a deadly fire occurred on November 26. The stock slid as much as 11%, its biggest drop since April.
ISS clarified that its role was administrative, arranging services through third parties appointed by the building’s Incorporated Owners, and that it had no involvement in the decision-making, installation, or maintenance of fire safety systems. The company welcomed the Hong Kong authorities’ decision to form a judge-led independent committee to investigate the fire.
Analysts noted that such investigations can create uncertainty and raise risk premiums, which likely contributed to the stock drop. Despite the decline, ISS shares remain over 50% higher than a year ago. Short interest is low, at 1.1% of the free float. The probe will review systemic causes behind the fire, with results to be made public.
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