Hot stock: LS 2 Holdings surges over 90%, prompting SGX query

SHARES of cleaning services company LS 2 Holdings rose steadily on Tuesday (Oct 18) morning amid heavy trading, triggering a Singapore Exchange (SGX) query on “unusual” price and volume movements.

Earlier at 10.51 am, the counter had reached S$0.065, up S$0.031 or 91.2 per cent after 11.7 million securities changed hands.

LS 2 ’s share price continued its ascent following a 10.58 am query issued by SGX, pausing at S$0.075 as at the midday trading break – representing a S$0.041 or 120.6 per cent increase from its Monday closing price of S$0.034.

No married deals were recorded in early trade, according to ShareInvestor data.

By 3.35 pm, the company issued a response saying it was unaware it was undisclosed information which may explain the trading activity.

It however cited Bonvest Holdings’ recently announced privatisation offer for its subsidiary Colex Holdings, a Catalist-listed waste management company, as a possible explanation for the trading without providing further details.

After the response was filed, its stock price rose even further to S$0.087 as at 3.54 pm – up S$0.053 or 155.9 per cent with 33 million securities traded.

Catalist-listed LS 2 made its debut on the SGX Catalist board just earlier this year on Feb 24 at S$0.295, 47.5 per cent above its initial public offering (IPO) price of S$0.20 per placement share.

After ending its first day of trading at S$0.88 – up 340 per cent from the IPO price – the company was issued a “trade with caution” alert on the same day and responded saying it was unaware of any material information that could have explained the price and volume movements in its shares since listing.

The latest query is the second to be issued to the company in two months. LS 2 was previously queried by SGX for similar reasons on Sep 8 after it closed the day down S$0.034 or 34 per cent at S$0.066.