NEWLY-LISTED cleaning services company LS 2 Holdings on Friday (Feb 25) said it was unaware of any material information previously unannounced or that was in its offer document that could explain the price and volume movements in the company's shares since its listing on Thursday.

The company also said it was unaware of any possible explanation for such trading activity, and confirmed its compliance with the Catalist rules.

The board also confirmed that none of its directors have engaged in activity or conduct in breach of Section 197 and/or Section 198 of the Securities and Futures Act, including false trading and marketing rigging transactions, and market manipulation.

LS 2's response came a day after the Singapore Exchange Regulation (SGX RegCo) slapped a "trade-with-caution" alert on the company on its trading debut.

The counter ended its first day of trading at S$0.88, up 340 per cent from its initial public offering (IPO) price of S$0.20. The stock had also hit an intraday high of S$1.60.

The bourse watchdog noted on Feb 24, the day of LS 2's trading debut, that out of 207 placees, 166 sold their entire allotment, which significantly reduced the distribution. A majority of these accounts were also connected through a common trading representative and the selling was concentrated within the first hour of trading, SGX RegCo noted.

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In its response, LS 2's board said that the company, its directors and key officers are all aware of the relevant requirements of the Catalist rules. This includes the rule that states its officers - including executive chairman Roger Tan and chief executive Alvin Ong - are barred from trading in LS 2's securities a month before the company announces its full-year financial statements.

Tan and Ong have also provided moratorium undertakings with respect to their shares held in the company. These details are in the offer document, said LS 2.

Catalist rules state that a proportion of post-invitation share capital in public hands must be at least 15 per cent at the time of listing, and the number of public shareholders must be at least 200.

LS 2 said that notwithstanding the distribution of shareholders in the company, as noted by SGX RegCo in the trade-with-caution alert, there is no reason to believe that its total number of issued shares, excluding treasury shares, held in public hands fell below 10 per cent, given the volume of trades conducted since its listing.

The company and its sponsor, RHT Capital, will also monitor the overall distribution of shareholdings for assurance on orderly trading in its securities, and will update the relevant authorities if required.

LS 2 said it has requested for its list of shareholders from the Central Depository of Singapore and its share registrar to be provided on a daily basis, which it will also provide to its sponsor and SGX RegCo, if needed, when available.

"The company will continue to monitor the trading price and volume of its securities, and the board may request for a trading halt in the event of any unusual trading activity or to prevent a disorderly market," said LS 2.

"The board will also, where necessary, consult with its legal advisers and its sponsor, on the implications of such trading activity in the company's securities."

LS 2 shares closed on Friday at S$0.89, up 1.1 per cent or S$0.01.