Hot stock: No Signboard hits three-month high after proposed placement news

SHARES of seafood restaurant operator No Signboard hit a three-month high on Friday following news of its proposed share placement.

Henry Chandra Tjiang, an Indonesian private investor with business interests in food manufacturing, is looking to subscribe to about 14.4 per cent of No Signboard's shares post-completion at 4.5 Singapore cents apiece, totalling S$3.5 million.

Shares of No Signboard jumped as much as 42.5 per cent or 1.7 Singapore cents to 5.7 cents in the morning trading session following the news. The last time the counter closed at this level was on June 14.

The counter later eased slightly to 5.5 Singapore cents, up 37.5 per cent or 1.5 cents as at the midday trading break. It was also the fourth most traded by volume with 21.5 million shares changing hands. There were no married deals recorded, according to ShareInvestor.

In a bourse filing on Thursday night, No Signboard said it was proposing the share placement to boost its cash reserves, which have continued to be eroded by the impact of the pandemic. The move will allow the group to improve its financial position and pursue new business opportunities.

It added that the investor has no connection, including business relationships, with No Signboard, its directors or substantial shareholders. He was identified as a potential investor through the network of No Signboard executive chairman and chief executive Lim Yong Sim.

The group said no introductory fees were paid by the company or its directors for the proposed placement.