HPL surges 5%; SGX RegCo requests explanation
[SINGAPORE] Shares of Hotel Properties Ltd (HPL) climbed as high 5.3 per cent in morning trading on Friday (May 16), prompting queries from Singapore Exchange Regulation (SGX RegCo) for the company to explain the surge.
The hospitality company, whose founder Ong Beng Seng has been embroiled in legal and health troubles in recent years, saw its shares jump S$0.23 to S$4.55 at 9.57 am, after closing at S$4.32 on Wednesday.
At about 10.11 am, the share price had calmed to S$4.52 or a 4.6 per cent rise, with a total of 167.9 million shares changing hands.
The market regulator issued a query regarding the stock’s “unusual price movements” to the company on Friday morning. Any previously unannounced materially sensitive information that may explain the trading should be disclosed promptly, SGX RegCo’s query stated.
The regulator also requested if the company was aware of other possible explanations for the trading activity, while asking HPL to affirm its compliance with listing standards.
HPL had announced on Apr 14 that Ong, 79, would be relinquishing his position as managing director to manage a medical condition – multiple myeloma, a form of white blood cell cancer. He had also stepped down as a director of the company after not seeking re-election at the company’s annual general meeting on Apr 29.
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The business magnate is embroiled in the high-profile conviction of former transport minister S Iswaran for accepting gifts as a minister and obstructing justice.
On Apr 24, the court granted Ong permission to leave Singapore for over two weeks to allow the businessman time to obtain further reports from his doctors on his medical condition. A spokeperson said he would travel to England, the US and Italy between Apr 28 and May 16 for both medical and work-related purposes.
The hotelier and property magnate was named in some charges to which Iswaran pleaded guilty, including abetting a public servant in obtaining gifts, and one charge of obstruction of justice.
The Malaysian had previously been scheduled to plead guilty to both charges on Apr 2. The hearing was rescheduled to Apr 25, then again to Jun 10.
