SGX RegCo issues ‘trade with caution’ on Healthbank Holdings after surge in trading volume and share price
Shares in Healthbank closed flat at 14.4 cents on Feb 24.
Singapore Exchange Regulation (SGX RegCo) has issued a “trade with caution” warning for investors looking to invest in the shares of Healthbank Holdings Limited (formerly SMJ International) 40B
.
The warning comes after a surge in trading volume in the company’s shares from Aug 22, 2022, to Nov 1, 2022, where 4.4 million shares in Healthbank were traded versus no trades executed in the two months before that.
The market regulator also noted the 75% surge in share prices in the company from Oct 25, 2022, to Nov 1, 2022, where Healthbank’s shares grew to 21 cents from 9 cents before.
In addition, the trading activity was mostly conducted among a “small group” of market participants who accounted for almost 80% of the total volume traded between Aug 22, 2022, and Nov 1, 2022. The company subsequently announced that it was entering into a proposed acquisition and equity transfer agreement just three days later on Nov 4, 2022.
SGX RegCo says it is reviewing the trades in Healthbank’s shares and will take the “necessary actions”.
Shares in Healthbank closed flat at 14.4 cents on Feb 24.
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