Avarga says it is exploring a listing of its paper manufacturing business

AVARGA on Monday said it is exploring opportunities relating to its paper manufacturing business, which include the expansion and/or potential listing of said business.

However, such exploration is still at a preliminary stage, the mainboard-listed company said in a regulatory update, in response to Singapore Exchange (SGX) queries.

Avarga - which also has businesses in power generation and building materials distribution - received a query from the SGX on Monday afternoon for unusual price movements in its shares.

This was after the counter jumped 33.1 per cent or 5.1 Singapore cents to 20.5 cents. It closed up 4.1 Singapore cents or 26.6 per cent to 19.5 cents on Monday, with 51.3 million shares changing hands.

Avarga said it was not aware of the reason for the trading, adding that as an investment company, it is constantly considering possible corporate actions and exercises to increase shareholder returns.

It is also considering a possible transaction which will allow it to monetise its investment in its power plant located in Yangon, Myanmar, it said in the same update. That being said, the terms of the possible transaction are still not finalised and are under consideration.

The company added that its subsidiary - Taiga Building Products - reported strong earnings growth for the period ended June 30, 2020. Avarga has noted that companies in the building materials industry in North America have generally performed strongly in the stock market, given recent strong demand in housing and home renovation projects.

Avarga has also confirmed its compliance with listing rules and in particular, mainboard rule 703.