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Hot stock: Trendlines surges 13% on potential exit for portfolio firm
SHARES of The Trendlines Group climbed on Tuesday morning, after the Catalist-listed startup incubator announced that one of its portfolio companies was in talks for a share sale.
Just half an hour after the opening bell, the counter jumped as much as 1.4 Singapore cents or 13.1 per cent to reach an intra-day high of S$0.121. It then pared some gains as at 10.38am to trade at S$0.118, up 1.1 cents or 10.3 per cent.
About 24.8 million shares had changed hands, making Trendlines one of the most heavily traded by volume on the Singapore bourse in the morning session.
In a regulatory update shortly after midnight on Tuesday, Trendlines said a portfolio company may potentially sell all its shares to an unnamed public corporation. The portfolio company had signed a non-binding letter of intent with the potential buyer, which "demanded confidentiality".
If a deal is inked and the startup's share sale is completed, the transaction is expected to have a material positive impact on Trendlines' net tangible assets per share and earnings per share for the fiscal year ended Dec 31, 2019 and/or ending Dec 31, 2020.