Shares in Intraco Ltd jumped 22 percent to their highest in more than 11 years after Singapore tycoon Oei Hong Leong bought a large stake in the materials trading company.
By 0219 GMT, Intraco shares were up 19.8 percent at S$0.695, their most expensive since November 2000. Over 7.3 million shares had been traded by that time, compared with a full-day average volume of 4.9 million over the last five sessions.
Oei bought 20.8 million Intraco shares through the open market and via a married deal at around S$0.50 per share, according to a stock exchange filing. Oei now holds a 21 percent stake in Intraco.
"Retail investors believe Oei spotted an undervalued company, that's why they are buying into the stock now," said a local trader.
Intraco also said last week TH Investments Pte Ltd had bought a 29.89 percent stake in Intraco from Hanwell Holdings Ltd for about S$18.3 million. TH Investments is controlled by crane company Tat Hong Holdings Ltd.
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1006 (0206 GMT) (Reporting by Charmian Kok in Singapore; firstname.lastname@example.org)