Companies Markets

LS 2, recent from buying and selling debut, unaware of causes for buying and selling exercise after 'commerce with warning' alert

NEWLY-LISTED cleansing providers firm LS 2 Holdings on Friday (Feb 25) stated it was unaware of any materials info beforehand unannounced or that was in its provide doc that might clarify the value and quantity actions within the firm’s shares since its itemizing on Thursday.

The corporate additionally stated it was unaware of any attainable clarification for such buying and selling exercise, and confirmed its compliance with the Catalist guidelines.

The board additionally confirmed that none of its administrators have engaged in exercise or conduct in breach of Part 197 and/or Part 198 of the Securities and Futures Act, together with false buying and selling and advertising rigging transactions, and market manipulation.

LS 2’s response got here a day after the Singapore Trade Regulation (SGX RegCo) slapped a “trade-with-caution” alert on the corporate on its buying and selling debut.

The counter ended its first day of buying and selling at S$0.88, up 340 per cent from its preliminary public providing (IPO) worth of S$0.20. The inventory had additionally hit an intraday excessive of S$1.60.

The bourse watchdog famous on Feb 24, the day of LS 2’s buying and selling debut, that out of 207 placees, 166 bought their total allotment, which considerably lowered the distribution. A majority of those accounts had been additionally linked via a typical buying and selling consultant and the promoting was concentrated throughout the first hour of buying and selling, SGX RegCo famous.

In its response, LS 2’s board stated that the corporate, its administrators and key officers are all conscious of the related necessities of the Catalist guidelines. This consists of the rule that states its officers – together with govt chairman Roger Tan and chief govt Alvin Ong – are barred from buying and selling in LS 2’s securities a month earlier than the corporate proclaims its full-year monetary statements.

Tan and Ong have additionally offered moratorium undertakings with respect to their shares held within the firm. These particulars are within the provide doc, stated LS 2.

Catalist guidelines state {that a} proportion of post-invitation share capital in public fingers should be no less than 15 per cent on the time of itemizing, and the variety of public shareholders should be no less than 200.

LS 2 stated that however the distribution of shareholders within the firm, as famous by SGX RegCo within the trade-with-caution alert, there isn’t a motive to imagine that its whole variety of issued shares, excluding treasury shares, held in public fingers fell beneath 10 per cent, given the quantity of trades performed since its itemizing.

The corporate and its sponsor, RHT Capital, will even monitor the general distribution of shareholdings for assurance on orderly buying and selling in its securities, and can replace the related authorities if required.

LS 2 stated it has requested for its record of shareholders from the Central Depository of Singapore and its share registrar to be offered every day, which it is going to additionally present to its sponsor and SGX RegCo, if wanted, when out there.

“The corporate will proceed to observe the buying and selling worth and quantity of its securities, and the board could request for a buying and selling halt within the occasion of any uncommon buying and selling exercise or to stop a disorderly market,” stated LS 2.

“The board will even, the place mandatory, seek the advice of with its authorized advisers and its sponsor, on the implications of such buying and selling exercise within the firm’s securities.”

LS 2 shares closed on Friday at S$0.89, up 1.1 per cent or S$0.01.

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