The Singapore Regulation (SGX RegCo) issued a query to LS 2 Holdings after shares in the company surged by 76.47% or 2.6 cents to 6 cents from its closing price of 3.4 cents on Oct 17.
LS 2 Holdings had received a similar query from the market regulator on Sept 8 after its shares fell by 14.29% to 6.6 cents at the time.
Shares in LS 2 Holdings are the fourth-most traded shares on the Singapore Exchange (SGX) with 13.8 million shares changed hands so far. In comparison, only 7.3 million shares changed hands on Oct 17.
In its query at 10.58am on Oct 18, SGX RegCo noted the company’s “unusual price and volume movements”. It added that this was the second query issued to the company in the past two months.
Further to its query, SGX RegCo asked LS 2 Holdings to reveal any information that may have caused the trading. The market regular also asked the company to confirm its compliance with the listing rules.
LS 2 Holdings made its trading debut on the morning of Feb 24, with its initial public offering (IPO) priced at 20 cents.
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SGX RegCo had, at the time, issued a “trade with caution” alert on the counter after shares in the company surged as high as $1.60 before closing the day at 88 cents.
As at 11.09am, shares in LS 2 Holdings are trading 2.2 cents higher or 64.7% up at 5.6 cents.
/Update
See also: Sinostar Pec triggers SGX RegCo query after shares surge by 20%
In its response, LS 2 Holdings said that it was not aware of any information that could have contributed to the unusual price and volume movements on Oct 18.
However, the company pointed out that the proposed privatisation offer of Colex Holdings by Bonvests Holdings on Oct 17 could have contributed to the share price and volume movements in the company. Colex is a company that specialises in contract cleaning and waste management.
