Ezion Holdings said it wasn’t aware of any information that would explain the more than 40 percent surge in its stock price on Wednesday, but it added potential strategic investors had begun some due diligence.
That was in response to a query from SGX after the company’s shares ended up 40.48 percent at S$0.059 on a surge in volume.
Ezion noted comments from its earnings announcement earlier this month, which said it was in preliminary talks with potential strategic investors.
On Wednesday, Ezion said the talks were continuing.
“The group is in preliminary discussions with potential strategic investors and continues to work with strategic investors and partners to grow its market share in the liftboat business as well as strengthen the group’s financial position,” Ezion said.
“In relation to the preliminary discussions with potential strategic investors, certain due diligence on the company has commenced,” it added.
But it noted there was no certainty that the interest would result in any transaction.
In its third-quarter results announced earlier this month, Ezion said it posted a loss before income tax of US$20.2 million, as revenue fell 55.9 percent on-year to US$28.1 million.