Hot stock: Jiutian Chemical sees heavy trading after completing share placement

SHARES of Jiutian Chemical saw heavy trading on Wednesday after the company completed a share placement.

The Catalist-listed firm, which produces coal-based fine chemicals, raised about S$10.3 million on Tuesday through a non-underwritten placement of 170 million new shares at an issue price of 6.03 Singapore cents apiece.

Jiutian Chemical's shares were the most traded by volume on the Singapore bourse as at 1.49pm on Wednesday with 118.5 million shares changing hands. The counter hit an intraday high of 8.7 Singapore cents, up 6.1 per cent or 0.5 cent at the time.

Jiutian Chemical non-executive and non-independent chairman Han Lianguo said in the Tuesday bourse filing that the placement exercise received strong interest from institutional investors - who accounted for the majority of the placement amount.

"Going forward, the group will be very focused on maximising returns from its current stable of assets, while constantly looking out for expansion and synergistic investment opportunities that are financially attractive and sustainable," he said.