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Shares of Y Ventures jump nearly 9%; prompts SGX query

SHARES of data analytics and e-commerce firm, Y Ventures, surged 8.82 per cent, or six Singapore cents to S$0.74 apiece as at 10.50am on Wednesday, prompting a query from the Singapore bourse regarding "unusual price movements".

Some 2.55 million shares changed hands in the morning trade.

In response to queries from the Singapore Exchange about the unusual price movements, the company said it occasionally enters into discussions for the possibility of joint ventures. These discussions are "ongoing with no definitive legal documentation being signed".

The company said it will make further announcements when there are material developments and added that it was not aware of any other possible explanation for the trading.

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In January, Y Ventures said it had raised S$1.2 million through a share placement with R3 Asset Management, a fund linked to Osim founder Ron Sim.

The shares were placed at a discount of about 9.6 per cent to the volume-weighted average price on Jan 8, the day the subscription agreement was signed, and represent about 2.4 per cent of the group's enlarged capital.

In a brokerage report last month, UOB Kay-Hian said the "endorsement by the management of R3 which comprises seasoned veterans in the consumer retail industry is a strong show of confidence in Y Ventures".

"We are excited about this and believe the partnership could open up a lot of potential collaborations or other opportunities," said the brokerage, which has a "buy" rating and a target price of S$0.65 on the stock.

Additionally, PhillipCapital in January also began coverage on the stock with a "buy" call and a target price of S$0.70. It said it is pegging the valuation of Y Ventures to e-retailers from the US and Europe.

Y Ventures reversed into a net loss of US$162,053 for the first-half of fiscal 2017, though this includes the one-off expenses linked to its IPO last year, it announced in August. Stripping out the listing expenses, Y Ventures would have recorded a pre-tax profit of US$571,805.

Y Ventures shares closed five cents up at S$0.74 on Wednesday.