SGX issues caution on CEFC after recent buying mainly by small number of offshore accounts

SINGAPORE - The Singapore Exchange (SGX) on Friday (Aug 14) advised shareholders and potential investors to exercise caution when dealing in the shares of mainboard-listed CEFC International Ltd, an investment holding company which deals in the trading of petrochemical, and fuel oil and petroleum products.

CEFC revealed about three weeks ago that its shares were tightly held. It said then that just 62 shareholders hold more than 96 per cent of its issued capital.

SGX noted on Friday that CEFC had announced on Aug 10 a placement of about 705 million shares at 35 cents each.

"This follows the company's 21 July reply to SGX's public query, saying that it was not aware of any information about the company that was not previously announced, apart from a potential joint venture and related funding, which if known might explain the trading activity in its shares.

SGX issued a trade with caution warning after CEFC's July 21 reply," SGX said.

The share placement followed the increase in the price of CEFC shares from 34 cents on July 10 to 36.5 cents on Aug 6. During this period, SGX issued two public queries to CEFC including the one earlier.

SGX said it has reviewed the trading activities in CEFC shares during this period and observed that buying volume was concentrated in a small number of offshore accounts. They accounted for more than 40 per cent of the total traded volume during the period.

SGX said it was reviewing CEFC's announcement and the trades in its shares, and would work with the relevant regulatory agencies to pursue actions to maintain a fair, orderly and transparent market.