SGX RegCo issues ‘trade with caution’ alert on Sevens Atelier
Yong Jun Yuan
SEVENS Atelier was issued with a “trade with caution” alert by Singapore Exchange Regulation (SGX RegCo) on Friday (Jul 8), after its share price rose by 252.3 per cent from S$0.088 on Apr 28 to a high of S$0.31 on Jul 8 (Friday).
SGX RegCo noted that in the same period, the Straits Times Index had fallen by 6.1 per cent.
On Jun 13, the bourse watchdog issued a trading query to the company, formerly known as Pan Asian Holdings, about the unusual price movements in its shares.
In response, the company referenced an announcement on May 20, in which it sought approval to diversify into the design-and-build business through the proposed acquisition of Sevens Creation.
In its circular, the company said that it has engaged in four principal businesses, including the general trading and supply of piping systems and related accessories, as well as the manufacturing, sales and distribution of valves.
On Jul 7, SGX RegCo issued another trading query to Sevens Atelier on unusual price movements, to which the company said it was not aware of any possible explanation.
SGX RegCo noted that between Apr 29 and Jul 8, a small group of accounts were responsible for over 70 per cent of the “buy” volume in Sevens Atelier shares.
The regulator’s initial findings also suggest that the accounts appeared connected to each other and to the vendor of Sevens Creation.
Sevens Atelier shares rose 14 per cent or S$0.035 to close at S$0.285 on Friday.
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