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Hot stock: SGX queries UMS as stock climbs 8.9%
SINGAPORE Exchange (SGX) has issued a query to precision engineering firm UMS Holdings Limited citing "unusual price movements".
As at 1.15pm, UMS shares were trading 8.9 per cent higher at $1.105 apiece. About 9.39 million shares changed hands, making it one of the most highly traded stocks on the Singapore bourse.
UMS is in the midst of issuing one free bonus share for every four shares held, with the books closure date set for the market close of Oct 26.
A bonus share issue would typically reduce the per-share price of a stock since the company's wealth must now be divided by a larger number of shares. In a one-for-four bonus issue, for instance, the theoretical share price after the bonus issue would be 20 per cent less than the pre-bonus share price since the wealth attributed to four shares must now be split among five shares instead.
Buoyed by a boom in the global semiconductor industry, UMS reported that net profit for the second quarter jumped 77 per cent to S$11.5 million in August this year, up from S$6.5 million a year ago.
UMS closed at S$1.075 on Thursday, up 6 cents.