Wednesday, 3 January 2018

Hot stock: F J Benjamin shares fervently; prompts SGX inquiry

Design retailer F J Benjamin Holdings has gotten yet another inquiry from the Singapore Exchange (SGX) following a spike in its exchanging volume. 

As at 11.52am on Thursday before the late morning break, the counter was exchanging 6.1 for every penny, or 0.5 Singapore penny higher to 8.7 Singapore pennies each. Nearly 39.6 million offers changed hands. 

In a SGX recording on Thursday, the bourse refered to "irregular volume developments" in the organization's offers. In addition to other things, it requested that the firm reveal data not already reported concerning the gathering which clarify the exchanging. These incorporate arrangements that may prompt joint endeavors, mergers or acquisitions, and the deal or buy of a noteworthy resource, the SGX said. 

This is the second inquiry issued to the organization in the course of recent months. On Nov 22, FJ Benjamin opened at 7.8 Singapore pennies, bouncing 2.5 Singapore pennies, or an eyebrow-raising 36.2 for every penny, to close at 9.4 Singapore pennies. 

The organization said in light of SGX's past inquiry that it didn't know about any conceivable clarification, other than a proposed renounceable non-endorsed rights cum warrants issue. 

In October, FJ Benjamin declared a proposed renounceable non-endorsed rights cum warrants issue to raise up to S$39 million in net continues. About S$12 million will be raised through the issuance of 341 million new standard offers at an issue cost of 3.5 Singapore pennies each, in view of three rights shares for each five existing offers. 

Moreover, around 682 million warrants will be offered at four Singapore pennies for every warrant, in view of two warrants for each one rights share bought in, which will raise about S$27 million. The warrants have a three-year practice period. 

Accepting that every one of the warrants are worked out, FJ Benjamin will have about S$35 million in net continues, of which around 50 for each penny will be utilized to help the extension of the gathering's business exercises, and the other half for "general corporate purposes". 

For monetary 2018's first quarter finished Sept 30, 2017, the organization limited its net misfortune to S$942,000, from a net loss of S$3.6 million for the year-prior period. Income likewise fell 19 for every penny to S$41.4 million for the principal quarter as misfortune making brands were stopped. 

The organization has been on SGX's watch list since December 2016 for maintaining pre-impose misfortunes for more than three back to back money related years, and having a market top of under S$40 million.

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