Hong Leong Asia surges 9.17% in early trading; firm says unusual activity due to rights issue

HONG Leong Asia said that unusual trading activity on Monday was likely related to the group's current undertaking of a renounceable non-underwritten rights issue.

The rights issue closed for acceptances and excess applications on Oct 19, and the details of the valid acceptances and excess applications for the rights shares received as at the close will be announced by the company upon validation by The Central Depository on or around Oct 23.

Hong Leong Asia drew an unusual trading query from the Singapore Exchange (SGX) on Monday, after the counter surged 9.17 per cent in early trading, rising five Singapore cents to S$0.595 before the lunch break.

The share price jump came on volume of 1.4 million shares traded.

In a query around 11.18am, the SGX asked the company to share possible reasons for the "unusual price and volume movements".

Hong Leong Asia closed on Monday at 61.5 Singapore cents, up 12.84 per cent.