Mercurius ends 10.3% lower after rising as much as 8.2% on hefty turnover
Singapore
SHARES of Catalist-listed Mercurius Capital Investment fell after spiking in early trade on Tuesday.
Its shares rose to 10.5 Singapore cents as at 9am on Tuesday, up 0.8 Singapore cent or 8.2 per cent, before falling to an intraday low of 8.7 cents at 11.46am - the same price at which it eventually closed, down S$0.01 or 10.31 per cent.
It was the most actively traded counter by volume that day, with a total of 109.3 million shares changing hands.
Tuesday marked the resumption of trading, after Mercurius announced on Monday that it would be diversifying into the grocery business. It had earlier called a trading halt on July 8.
Mercurius aims to grow a network of over 500 stores across the region over the next three years.
The investment holding company had entered into an agreement on Monday to acquire Songmart Holdings for an aggregate consideration of S$36 million. This follows a term sheet signed in April for the proposed acquisition.
In an interview with The Business Times on Monday, Mercurius chairman and chief executive officer Chang Wei Lu said in Mandarin that amid the Covid-19 pandemic, it was decided that the grocery business was an essential service with huge demand.
"It's an opportunity to go into a business that is sustainable in the long run, and provides that actual cash flow for us also," he added.
The target group is principally engaged in the business of trading foodstuff, groceries, sundry goods and daily necessities, as well as the operation of 12 mini-marts and convenience stores under the Songmart brand, and a premium supermarket under the Granville brand in Malaysia.
Mr Chang said the company is "laser-focused" on growing its key market of Malaysia, and plans to "aggressively expand" the store network in the next few years.
Beyond Malaysia, Mercurius is also planning to open Songmart and Granville stores in Singapore, Indonesia, Thailand and Vietnam, and to develop an online platform to complement their physical store strategy.
