Hot stock: Ezra plunges 37% on Monday amid crisis
SHARES of Ezra Holdings fell by some 37 per cent on Monday to trade at S$0.03, amid a crisis emerging from a potential US$170 million writedown tied to its subsea joint venture (JV).
As at 10.00am, the listed offshore and marine group was the most active stock on Singapore Exchange, on which about 165.5 million Ezra shares had changed hands.
Ezra opened the day at S$0.029, rising quickly to a high of S$0.033, before plunging by over 37 per cent to S$0.03 as at 10.00am. Its low was S$0.028.
The company said on Feb 3 that a US$170 million writedown comprising investment in shareholders' loans and inter-company balances owed by Emas Chiyoda Subsea (ECS) and its subsidiaries may be on the table.
Ezra owns 40 per cent shareholding interest in ECS.
According to a report on Monday in The Business Times, the market is split over whether Ezra can manage to garner the required financial backing to pull through the crisis.
Ezra had requested for a trading halt on Feb 1. It asked for a lift to the trading halt on Feb 3, the same day it made the announcement in relation to ECS.
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