SGX queries Halcyon Agri on trading activity; shares up 29.8% this week

SINGAPORE Exchange Regulation (SGX RegCo) has issued a query to Halcyon Agri Corp on Friday morning in relation to its trading activity, after it noted "unusual price movements" in the shares recently.

Shares of the natural rubber supplier were trading at 30.5 Singapore cents as at 10.43am on Friday, unchanged from the previous close. However, its shares have gained 29.8 per cent since Monday's close of 23.5 cents.

In the query issued at 9.29am, SGX RegCo asked if Halcyon Agri was aware of any information not previously announced concerning the company that might explain the trading. If the company were aware, the information shall be announced immediately, it added.

SGX RegCo also asked if the company was aware of any other possible explanation for the trading, such as public circulation of information by rumours or reports. It also asked the company to confirm its compliance with listing rules.

Prior to the query, Halcyon Agri's most recent announcement was on Nov 26, where it provided updates on its business for the third quarter ended Sept 30, 2020.

It had said revenue for Q3 was up 11 per cent on the quarter to US$396.4 million, from US$357.3 million for Q2, although it is still down 22.7 per cent year on year due to lower delivered volumes and lower average realised selling price.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at US$10.9 million for the latest three months, a reversal of the previous quarter's negative Ebitda of US$17.4 million.

On Nov 18, Halcyon Agri had announced the successful completion of its issuance of US$200 million guaranteed subordinated perpetual securities, which carries an initial distribution of a fixed rate of 3.8 per cent per annum for the first five years.

It had announced the pricing of the perps in a filing on Nov 11. The perps are guaranteed by Chinese state-owned enterprise Sinochem International Corp, which owns Halcyon Agri's major shareholder Sinochem International Overseas.