King Wan says talks for a potential joint venture could be behind heavy trading

BUILDING services company King Wan Corporation 554 has said in a regulatory update that ongoing discussions with a party to set up a joint venture to carry out retrofitting and upgrading solutions could have caused the unusual volume movement in its shares.

The mainboard-listed company, in a response to a query by the Singapore Exchange (SGX) on its unusual trading activity, was, however, unable to conclusively attribute this to the trading activity, it said in the bourse filing.

King Wan added that it will, in compliance with the Corporate Disclosure Policy of the Singapore Exchange (SGX), make announcements, if it had any, at an appropriate time.

It added, however, that there was no assurance that a transaction would come out of these talks, and that it did not expect that there would be a significant impact on its earnings per share or net tangible assets per share for the financial year ending March 31, 2022.

King Wan's shares ended Wednesday at 3.9 Singapore cents, up 56 per cent or 1.4 Singapore cents. It was also among the most heavily traded stocks on the local bourse, with over 45 million shares changing hands.

The company said in its response to SGX: "The company is also continuously and actively exploring opportunities to build and diversify our business and revenue streams, and may, from time to time, engage in discussions with potential targets."

The company also confirmed that it is in compliance with the mainboard listing rules.