Hot stock: SK Jewellery shares up 56.8% after co-founders' privatisation bid

SHARES of Catalist-listed SK Jewellery Group reached a two-year high on Wednesday after the jeweller's co-founders offered to take the company private at 15 Singapore cents per share.

The counter hit an intra-day high of 14.9 cents on Wednesday, up 56.8 per cent or 5.4 cents as at 1.05pm, just shy of the offer price. The last time the counter closed near this level was in late July 2018.

The offeror in the voluntary conditional cash offer - OroGreen Investment - was incorporated by the co-founders Lim Yong Guan, Lim Yong Sheng and Lim Liang Eng, who also hold the positions of non-executive chairman, chief executive and executive director respectively.

The 15 Singapore cents per share offer price values the company at S$84 million and exceeds the highest closing price of the Catalist-listed jeweller's shares in over two years preceding the last trading day on Aug 27, the company said in a regulatory update on Wednesday.

It represents a premium of 70.5 per cent over the last traded price per share on Aug 27. It also represents a premium of 89.9 per cent, 94.8 per cent, 89.9 per cent and 54.6 per cent respectively over the volume-weighted average price per share for the one-month, three-month, six-month and 12-month periods up to and including Aug 27.

The offer is conditional upon OroGreen Investment and parties acting in concert with it achieving shareholding of not less than 90 per cent as at the close of the offer. OroGreen Investment does not intend to revise the offer price - which is final, SK Jewellery said.

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Shares of SK Jewellery were trading up 55.8 per cent or 5.3 cents to 14.8 Singapore cents as at 2.11pm on Wednesday.