SGX cautions over CEFC trading on buying by small number of offshore accounts

Singapore Exchange (SGX) on Friday advised shareholders and potential investors to exercise caution when dealing in the shares of CEFC International Limited, a trader of petrochemical and petroleum products.

The regulator noted that CEFC had announced on August 10 its placement of about 705 million shares at S$0.35 each.

"This follows the company's 21 July reply to SGX's public query, saying that it was not aware of any information about the company that was not previously announced, apart from a potential joint venture and related funding, which if known might explain the trading activity in its shares. SGX issued a Trade with Caution warning after CEFC's 21 July reply,'' SGX said.

The share placement followed the increase in the price of CEFC shares from S$0.034 on July 10 to S$0.3650 on August 6, 2015. During this period, SGX issued 2 public queries to CEFC including the one earlier.

SGX said it has reviewed the trading activities in CEFC shares during this period and observed that buying volume was concentrated in a small number of offshore accounts.

Together, these accounts accounted for more than 40 per cent of the total traded volume during the period.

SGX said it was reviewing CEFC's announcement and the trades in its shares, and would work with the relevant regulatory agencies to pursue actions to maintain a fair, orderly and transparent market.

Shareholders and potential investors should exercise caution when dealing in the shares of CEFC International Limited.