Kim Heng has received a query from the Singapore Exchange Regulation (SGX RegCo) on May 31 after its share price climbed to a high of 6.6 cents, up 73.7% from its previous close of 3.8 cents.

 

The surge in share price followed an unusually high trading volume for the counter. Kim Heng closed the day as the second-highest traded stock by volume on the SGX, with as many as 71.8 million shares traded. In comparison, Kim Heng&rsquo s three-month average trading volume stands at 5.7 million shares.

 

A query on Kim Heng&rsquo s trading activity was issued by SGX RegCo at 4.26pm, shortly after its share price hit the intraday high. The share price represents a new 52-week high for the counter.

 

SGX RegCo asked Kim Heng to reveal any information that might explain the &ldquo unusual volume movements&rdquo for its shares. It also asked Kim Heng to confirm whether it was in compliance with the listing rules.

Thomas Tan Keng Siong, executive chairman and CEO of Kim Heng Offshore & Marine, has been buying up shares of the company. On May 4, via an entity called KH Group Holdings, Tan acquired 500,000 shares for $19,110.16, or an average of 3.82 cents each. On May 3, he bought the same volume at the same price too.

KH Group is held by Tan and his wife, Natalie Amanda Ng Chwee Lian.

Following the transactions on May 4, Tan and his wife hold a deemed stake of 282.75 million shares, equivalent to 39.97%, up from 39.9% previously. In addition, Tan holds a direct stake of 100,000 shares, which gives him a total interest of 39.98%. The last time Tan had bought Kim Heng shares was on Oct 8, 2020, when he paid $3,000 for 100,000 shares, or three cents each.

Up till May 11, Kim Heng was known as Kim Heng Offshore and Marine. The name change, which was approved by shareholders at an EGM held on April 23, reflects its expansion beyond the offshore and marine industry. Last year, Kim Heng won contracts to support the construction and to help service wind farms in Taiwan.

For the full year ended Dec 31, 2020, Kim Heng narrowed its losses by 32% to $5.3 million from losses of $7.8 million in the preceding year. Revenue in the same period was down 35% to $37.6 million.