SGX RegCo warns investors of dealing Vividthree's shares

The regulation’s review suggested a cross-trading activity in the company’s shares.

Singapore Exchange Regulation (SGX RegCo) urges investors and potential investors to exercise caution when dealing in the shares of Vividthree Holdings, said in an announcement.

The advisory follows Vividthree’s announcement of a placement of up to 15,880,000 shares on 12 February.

A review of Vividthree’s shares by the regulation between the period of 9 September 2019 and 19 February 2020 showed that a small group of accounts was responsible for over 90% of the traded volume of the shares. Further, it has been known that such accounts appear to be connected to each other.

SGX RegCo has also found that the small group of accounts appeared to have traded amongst themselves during the period in review. Their cross trades were said to account for 71% of on-market traded volume, where cross-trade activity ran for 94 days out of 111 active trading days.

Prior to Vividthree’s announcement of a placement, the company share price declined since-mid January. SGX RegCo noted that the volume of cross-trades between the accounts progressively increased from such time until the placement of shares closed in February.