General Announcement::SGX RegCo issues Trade with Caution alert on shares of Sinostar Pec Holdings Limited

Issuer & Securities

Issuer/ Manager
SINOSTAR PEC HOLDINGS LIMITED
Securities
SINOSTAR PEC HOLDINGS LIMITED - SG1V73937608 - C9Q
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
09-Nov-2023 17:15:38
Status
New
Announcement Sub Title
SGX RegCo issues Trade with Caution alert on shares of Sinostar Pec Holdings Limited
Announcement Reference
SG231109OTHR32PF
Submitted By (Co./ Ind. Name)
SINGAPORE EXCHANGE REGULATION PTE. LTD.
Designation
SURVEILLANCE
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange Regulation ("SGX RegCo") urges investors and potential investors to exercise caution when dealing in shares of Sinostar Pec Holdings Limited ("Sinostar").

The price of Sinostar shares rose from close of $0.077 on 14 August 2023 to an intraday high of $0.188 on 28 August 2023 (representing a rise of $0.111 or 144%), before closing at $0.184 on 30 August 2023. During this period, the Straits Times Index fell 34 points or 1%.

On 25 August 2023, SGX RegCo issued a trading query to Sinostar on the unusual price movements in its shares. Sinostar replied it was not aware of any reasons that might explain the share price movements. The Company stated that the Board has a duty to assess all strategic options to maximise shareholder value. From time to time, it may enter into discussions on possible transactions but there is no certainty any transaction will materialise (https://links.sgx.com/1.0.0/corporate-announcements/Y1MTG3YZUG74SG0D/9424660a64b8439da84f9225db65c49c3104b30f83c700a6262e54c4f8955961).

While the price fell after the query, it remained at a level much higher compared to the closing price of $0.077 on 14 August 2023. Between 29 August and 21 September 2023, Sinostar share price ranged between $0.130 and $0.185. Thereafter, there were no trades in Sinostar. Subsequently on 28 September 2023 after market close, Sinostar announced a proposed renounceable non-underwritten rights issue, with the issue price of $0.14 based on the last trade price on 21 September 2023.

SGX RegCo's review of the trading activities between 15 and 30 August 2023 showed that trades by a small group of market participants accounted for 65% of the total volume traded. Individuals behind the group of accounts appear to be connected to Sinostar.

SGX RegCo has referred the matter to the authorities for their necessary actions.