Zheneng Jinjiang Environment Holding Company triggered a query from the Singapore Exchange Regulation (SGX RegCo) at 10.37am on Dec 7 after its share price tumbled as much as 13 cents or 23% lower than its previous close of 57 cents.
In the query, SGX RegCo noted “unusual price movements” in the company’s shares and asked Zheneng Jiang to disclose any information that may explain the trading.
It also asked the company to confirm its compliance with the listing rules.
In a response issued on Dec 8, Zheneng Jinjiang disclosed that a former senior executive of the company had disposed of his shares in the company, which accounted for the bulk of the trades conducted on Dec 7. Based on information available to the board, the former executive gave his selling instructions to his nominee in September and it took some time for the shares to be transferred to the relevant account to facilitate the sale.
The company also disclosed that the board had received a request from certain shareholders of the company to facilitate due diligence in connection with a potential acquisition of shares in the company. "The board is evaluating the viability and feasibility of such request and will keep shareholders informed of further material developments," the company states.
In addition, Zheneng Jinjiang confirmed its compliance with the listing rules.
See also: Food Empire draws trading query from SGX (update)
As at 11.38am, shares in Zheneng Jinjiang are down 11.5 cents or 20.18% lower at 45.5 cents.
