Dyna-Mac queried by SGX after shares climb 18% on heavy volume

SHARES of offshore oil and gas contractor Dyna-Mac Holdings surged on Thursday morning, prompting a query from the Singapore Exchange (SGX).

The counter gained 18.1 per cent or 2.1 Singapore cents to 13.7 cents as at 10.51am. About 22.1 million shares had changed hands, making it one of the most heavily traded on the Singapore bourse in the morning session.

In the morning, SGX flagged the "unusual price movements" and asked the mainboard-listed company whether it was aware of any possible explanation for the trading.

Dyna-Mac responded during the midday break on Thursday that it does not know of any information not previously announced which might explain it, and is also unaware of other possible explanations. The board confirmed that Dyna-Mac is in compliance with listing rules.

Last week, the company announced that its founder, chairman and chief executive Desmond Lim had died. Mr Lim was Dyna-Mac's largest shareholder as at March 13, with a stake of about 41 per cent, followed by Temasek with some 25 per cent.

The existing management has stepped up to undertake key executive functions of the late Mr Lim, before the company appoints a new chairman and CEO.

Dyna-Mac provides engineering, fabrication and construction of offshore FPSO (floating production storage offloading) and FSO (floating storage offloading) topside modules as well as onshore plants and other sub-sea products for the oil and gas industries.