King Wan Corp., in response to a query from SGX about a surge in its stock price, said Wednesday it was in ongoing discussions with a party about potentially entering a joint venture to carry out retrofitting and upgrading services.
But it added, “the company is unable to conclusively attribute the information disclosed above to the trading activity.”
“There is no assurance that any transaction may materialise from these ongoing discussions. This is not expected to have any significant impact on the earnings per share or net tangible assets per share of the company for the financial year ending 31 March 2022,” King Wan said in a filing to SGX.
On Wednesday, the company’s share price surged up 56 percent to S$0.039 amid a spike in trading volume. Around 45.59 million shares changed hands on Wednesday, compared with 734,000 on Tuesday.
King Wan added that it is also continuously exploring opportunities to build and diversify the business and its revenue streams, and may occasionally engage in talks with potential targets.
The company said it wasn’t aware of any other possible explanations for the trading.
King Wan is a building services company, mainly providing mechanical and electrical engineering services for the building and construction industry, including designing and installing plumbing, air conditioning, ventilation systems, electrical systems, fire protection and alarm systems and security systems. The company has a network of subsidiaries, associates and joint ventures in Singapore, China and Thailand, according to its website.
Via its investment portfolio segment, King Wan operates in vessel ownership and chartering, property development and operating workers’ dormitories, the website said.