Blumont Group has called for a trading halt of its shares this morning after receiving a query by the Singapore Exchange (SGX) over an unusually steep rise in its share price.
SGX’s market surveillance unit said Blumont’s share price has risen from $0.30 on Jan 2 to $2.45 on Sep 30. This is a eight-fold increase over only nine months since the beginning of January. In the same period, the market cap of Blumont has increased from $508 million to $6.3 billion. This is a 12.5-fold increase.
Since December 2012, Blumont made announcements on acquisitions and investments in nine companies, of which only small investments of under A$/US$10 million were made in six companies. Of the remaining investments, the highest involved a purchase consideration of up to $48 million. There was also another investment amounting to about A$8.76 million with a concurrent subscription of convertible bonds.
SGX, however, says these announcements may not sufficiently explain the steep increase in the price of Blumont shares.
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