Shares of Ong Beng Seng’s HPL jump over 9%; company says it’s unaware of reason for intraday spike
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Ong Beng Seng stepped down as HPL's managing director on April 29 but is still HPL’s controlling shareholder.
PHOTO: ST FILE
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SINGAPORE – Shares of Hotel Properties Limited (HPL) rose as much as 9.3 per cent to $4.72 in morning trading on May 16, prompting a query from Singapore Exchange Regulation (SGX RegCo).
In response to the query, HPL said it was not aware of any information not previously announced concerning the company, its subsidiaries or associated companies that might explain the unusual trading activity.
It also said it was not aware of any other possible explanation for the unusual price movements, and confirmed that the company is in compliance with the SGX’s listing rules.
The stock sharply pared its gains in the afternoon, closing up 2.3 per cent, or 10 cents, at $4.42. About 545,000 shares had changed hands, well above the stock’s recent trading volume. Trading data also showed the price rally began on May 15.
The regulator had queried the trading activity in HPL shares at around 9.30am, adding that if appropriate, the company could consider requesting a trading halt.
The surge in HPL’s share price follows property tycoon Ong Beng Seng stepping down as managing director on April 29 by not seeking re-election at the company’s annual general meeting held that day. He is still HPL’s controlling shareholder.
The Edge Singapore, in a report on May 5, said that with Ong’s exit from the helm of the company, HPL, “with its freehold Orchard Road land bank that is undervalued by the market, is primed as a takeover target or opening the door for new capital partners”.
Ong is known as the man who brought Formula One to Singapore in 2008 – the first night race in the sport’s history.
He is set to plead guilty in a court case linked to former transport minister S. Iswaran.
In 2024, Ong was charged with one count of abetment under Section 165, which makes it an offence for a public servant to accept anything of value from any person with whom he is involved in an official capacity without payment or with inadequate payment.
Ong was granted permission to travel overseas from April 28 to May 16
HPL has interests in 41 hotels across 17 countries as at end-2024, according to its annual report. Its famous brands include Como Hotels & Resorts, Concorde Hotels, Four Seasons Hotels & Resorts, Hard Rock Hotels and Marriott International.
