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Hot stock: Equation Summit shares leap on news of placement to new investors
SHARES of Equation Summit surged as much as 43 per cent during Monday morning trading, on news of four new investors including a fund management firm and a Chinese businessman entering the fray through private placement.
At 11.10am, the penny stock put on 0.3 Singapore cent to one Singapore cent after an active trade of 81.93 million shares that brought the counter to the top volumes chart.
The group had announced before market trading that it had on Oct 21 entered into a subscription agreement to issue shares in a private placement to raise S$4.2 million. These 600 million new shares to be placed out represent 10.5 per cent of the enlarged issued share capital of group.
The subscribers are Asdew Acquisitions Private Limited, Teo Khiam Chong, Island Asset Management Pte Ltd and Chen Dawei.
Island Asset Management Pte Ltd is a registered fund management company regulated by the Monetary Authority of Singapore. Mr Chen has accumulated experience in the waste water treatment industry as the founder and CEO of Beijing Revolution Science and Technology Co Ltd and president of Tianjin Com-link Water Treatment Engineering & Technology Co Ltd. He was also the executive director of Beijing Juntai Investment Management Limited as well as China Everbright Water Limited.
Asdew Acquisition is a private limited company incorporated in Singapore investing in mostly listed equities, fixed income products and real estate products, while Mr Teo is an accredited investor who has experience in the financial industry.
They were independently introduced to the company through mutual business contacts of the directors, and this subscription is purely for their financial investment purpose, Equation Summit said.