Companies & Markets

Hot stock: King Wan shares up 51.3% amid ongoing talks for potential joint venture

Published Thu, Sep 2, 2021 · 05:42 PM

SHARES of building services company King Wan Corporation 554 : 554 0% saw heavy trading for a second consecutive day, following the company's disclosure that there are ongoing discussions with a party to set up a joint venture (JV) to carry out retrofitting and upgrading solutions.

This was announced in response to a query by the Singapore Exchange (SGX) on its unusual trading activity on Wednesday. However, it also noted that it was unable to conclusively attribute the talks for a potential JV to the trading activity.

Shares of King Wan ended Thursday at 5.9 Singapore cents, up 2 cents or 51.3 per cent. It was also the second most heavily traded stock on the local bourse for the day after over 101.7 million shares changed hands. Its shares were up 56 per cent on Wednesday.

King Wan said on Wednesday that that there was no assurance that a transaction would come out of these talks, and there is unlikely to be a significant impact on its earnings per share or net tangible assets per share for the financial year ending March 31, 2022.

"The company is also continuously and actively exploring opportunities to build and diversify our business and revenue streams, and may, from time to time, engage in discussions with potential targets," said King Wan.

The company added that it will, in compliance with the Corporate Disclosure Policy of the Singapore Exchange (SGX), make announcements, if it had any, at an appropriate time. It also confirmed that it is in compliance with the mainboard listing rules.