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Singapore Exchange Regulation (“SGX RegCo”) urges investors and potential investors to exercise caution when dealing in the shares of Memiontec Holdings Ltd (“Memiontec”).
The share price of Memiontec rose from $0.24 on 3 August 2021 to $0.95 on 12 January 2022, a rise of $0.71 or 295.8%, despite a modest improvement in the broad market. During this period, the Straits Times Index gained 105.73 points or 3.4%.
On 14 September 2021 and 12 January 2022, SGX RegCo issued trading queries to Memiontec on unusual price movements in its shares. Memiontec responded on both occasions that it was not aware of any reasons that could explain the unusual price movements.
SGX RegCo’s review between 3 August 2021 and 12 January 2022 showed that a group of accounts was responsible for approximately 33.7% of the buy volume in Memiontec shares, of which more than half of these trades were due to this group of individuals trading among themselves.
We have observed several instances of unusual price spikes. In particular on 11 and 12 January 2022, the group accounted for 39.4% to 44.5% of the buy volume, resulting in a price rise of 14.7% and 21.8% respectively .
SGX Regco has referred the matter to the authorities for their necessary actions.
