Shares of WE Holdings Ltd jumped as much as 9 percent after it said a Singapore businessman had bought a 2.95 percent stake in the electronic products company and it plans to expand into resource-related businesses in Myanmar.
WE Holdings shares jumped to S$0.121 on Tuesday, the highest in two months. More than 165 million shares were traded, twice the average full-day volume over the past 30 days. It was the second-highest traded stock by volume in Singapore.
Toh Soon Huat, the founder of Novena Holdings Ltd, bought 20 million shares of WE Holdings from Singyasin SMC Technologies Pte Ltd, the investment vehicle of the company’s chairman, Terence Tea.
Novena Holdings provides beauty and wellness services, as well as consumer products.
“Having Dr Toh on board as a strategic investor is testament to the fact that we are gaining momentum in our drive to put together the right resources and people to expand into Myanmar,” WE Holdings, which has a market cap of nearly S$75 million ($59.8 million), said in a statement.
The company recently said it plans to invest $20 million for a 20 percent stake in Myanmar-based cement manufacturer Dragon Cement Co Ltd, with the option to purchase an additional 20 percent.