SGX RegCo urges caution when dealing in shares of Vividthree Holdings Ltd.

Source: Singapore Exchange 2020-08-26

Singapore Exchange Regulation ("SGX RegCo") urges investors and potential investors to exercise caution when dealing in the shares of Vividthree Holdings Ltd. ("Vividthree").

SGX RegCo’s review of the trades in Vividthree shares between 9 September 2019 and 19 February 2020 showed that a small group of accounts was responsible for over 90% of the traded volume in Vividthree shares. The individuals behind these accounts appear to be connected to each other.

In addition, these accounts appeared to have traded among themselves (“cross trades”) during the period reviewed. Their cross trades accounted for 71% of on-market traded volume. Out of 111 active trading days, these accounts engaged in cross trading activity on 94 days.

SGX RegCo notes that Vividthree announced on 12 February 2020 a placement of up to 15,880,000 shares at price of at least 12.6 cents each, which is at a premium of 27.3% to the volume weighted average price of 9.9 cents on the date of the placement agreement. The placement will be on a best effort basis by the placement agent and subject to Vividthree and the placement agent entering into a pricing supplement by 30 April 2020.

The announcement of the placement followed a decline in Vividthree’s share price since mid-January 2020. The shares closed at 9.5 cents on 19 February 2020. Throughout this period, the volume of cross trades between these accounts progressively increased.

SGX RegCo is working closely with the authorities on the matter.

SGX RegCo urges caution when dealing in shares of Vividthree Holdings Ltd.

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