SINGAPORE (Sept 24): Singapore Exchange Regulation (SGX RegCo) has urged investors to exercise caution when dealing in the shares of Mirach Energy.
In an announcement on SGX at 5.19pm on Tuesday, the regulator noted that Mirach’s share price had more than doubled from 13 cents on Feb 8 to 29 cents on Sept 3.
SGX RegCo says a review of the trades in Mirach in this period showed that a small group of individuals was responsible for over 69% of the buy volume of Mirach shares.
These individuals appear to be connected to each other, it adds.
In particular, SGX RegCo pointed out that the closing price of Mirach shares jumped 21% from 16.3 cents to 19.7 cents between April 29 and May 15, despite the benchmark Straits Times Index falling 188.25 points, or 5.5%.
Mirach’s market capitalisation has increased to $44.5 million as at Sept 20, from $18 million on Feb 8.
SGX RegCo says it is reviewing the trades in Mirach shares, and will take the necessary actions including referring the case to statutory authorities where warranted.
According to Bloomberg data, Mirach’s largest shareholder is its CEO, William Chan Shut Li, who holds an 8.02% stake in the company. Other shareholders include See Hoy Chan Industrial with a 7.81% stake, Wee Cheng Kwan (5.61%), Wong Kai (3.39%), and Ho Bun Hoi (1.8%).
Mirach has not disclosed any open market purchases or open market sales over the past six months.
Mirach is currently on the Watch-List under both the Financial Entry Criteria and the MTP Entry Criteria.
On Wednesday, shares in Mirach closed 0.6 cent lower, or down 3.2%, at 18.4 cents on low volume. Since its peak on Sept 3, its share price has dropped 36.6%.
