FABCHEM China announced after trading hours on Wednesday that ongoing discussions in relation to a sale of the company shares by an undisclosed shareholder could lead to a possible general offer for all the shares.
The company cautioned that no definitive agreements have been entered into and there is no certainty that the possible transaction could proceed.
It said that it has decided to voluntarily suspend trading of its shares to avoid any irregular movements in share price and prevent irregular trading activities that may result from the leakage of any confidential information.
"The trading suspension would also provide market certainty and prevent market confusion for shareholders," said the company.
Fabchem China said that it will make further announcements when appropriate and "will endeavour to resume the trading of the shares as soon as possible".