General Announcement::SGX RegCo issues Trade with Caution alert on shares of LS 2 Holdings
Issuer & Securities
LS 2 HOLDINGS LIMITED
LS 2 HOLDINGS LIMITED - SGXE89787605 - ENV
Date &Time of Broadcast
Announcement Sub Title
SGX RegCo issues Trade with Caution alert on shares of LS 2 Holdings
Submitted By (Co./ Ind. Name)
SINGAPORE EXCHANGE REGULATION PTE. LTD.
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 the shares of LS 2 Holdings Limited ("LS2").
LS2 was listed on the Catalist board by way of placement at a price of $0.20 and commenced trading today on 24 February 2022. On the first day of trading, its share price rose to an intraday high of $1.60, up $1.40 (+700%) before closing at $0.88, up $0.68 (+340%). This was in contrast to the Straits Times Index ("STI") which fell 116.94 points or 3.45%.
Catalist Rule 406 requires that the proportion of post invitation share capital in public hands must be at least 15% at the time of listing and the number of public shareholders must be at least 200. The overall distribution of shareholdings should be expected to provide an orderly secondary market in the security.
SGX RegCo noted that out of the 207 placees, 166 sold their entire allotment which significantly reduced the distribution. Majority of these accounts are connected through a common trading representative and the selling was concentrated within the first half hour of trading.
SGX RegCo will continue to monitor the trades in LS2 shares and will take the necessary actions including looking into the placement, reviewing the activity and referring the matter to statutory authorities where warranted.