LS 2 Holdings shares gained at the start of trading today, even with SGX RegCo’s “trade with caution” alert issued on the counter last night.
As at 9.30 am, LS 2 Holdings, which made its trading debut yesterday (Feb 24), was up 2.5 cents to 90.5 cents, albeit with a modest volume of just 5,700 shares changing hands.
The Catalist listed company’s IPO was priced at 20 cents. It surged as high as $1.60 before ending Feb 24 at 88 cents. The gain of 340% is a stark contrast to STI’s drop of just over 3.4% amid jittery over outbreak of hostilities between Russia and Ukraine.
According to SGX RegCo, the majority of the investors who took up placement shares for the IPO have sold their shares.
RHT Capital is the issue manager and full sponsor for the IPO, while Soochow CSSD Capital Markets (Asia) is the placement agent.
In a response after market closed on Feb 25, LS 2 says its board isn’t aware of any material information not previously announced or contained in the prospectus that might have explained the price movements since trading began.
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The Board is also not aware of any other possible explanation for such trading activity, and confirms it is in compliance.
It adds that its directors, including chairman Roger Tan Hoo Kiat and CEO Alvin Ong are aware of listing rules where they are not to trade in shares of the company one month before full year earnings are announced.
The company also notes that Tan and Ong have provided moratorium undertakings with respect to their shares as set out in the prospectus.
“Notwithstanding the reduced distribution of shareholders in the company as noted by SGX RegCo in the trade with caution alert, based on the information available to the company and as set out above, the company is of the view that there is no reason to believe that its total number of issued shares excluding treasury shares held in public hands fell below 10%, given the volume of trades conducted since its listing”.
The company, with the support of its sponsor RHT Capital, is committed to ensure that at least 10% of the shares are at all times held by the public.
LS 2 and RHT Capital will also monitor the overall distribution of shareholdings for assurance on orderly trading in its securities and will update the relevant authorities if required.
LS 2 says it has asked for its list of shareholders from the Central Depository of Singapore and its share registrar to be provided on a daily basis, which it will also provide to its Sponsor (and to the SGX RegCo if necessary) once such information is available.
It also affirms it will continue to monitor the trading of its shares and may call for a trading halt in the event of any unusual trading activity or to prevent a disorderly market.
LS 2 shares closed Feb 25 at 89 cents, up 1.14%
