Shares of China Minzhong Food Corp Ltd jumped
after it said institutional funds and high net worth investors
had bought a 10.3 percent stake in the food processing firm from
Olympus Capital Holdings Asia at a placement price of S$0.80 per
China Minzhong shares rose as much as 6.7 percent to S$0.80
after a trading halt was lifted on Friday. Nearly 14 million
shares were traded, 1.8 times the average full-day volume over
the past 30 days.
But even after the rise, the stock was still down nearly 2
percent so far this year, lagging the 25 percent gain in the FT
ST Small Cap Index.
China Minzhong shares had plunged almost 12 percent on
Thursday after a block trade fuelled speculation that one of its
largest shareholders had sold its stake.
Olympus, a private equity fund, had invested in China
Minzhong since 2006, the company said in a statement on Friday.
"However, given the closed end nature of private equity
funds, it is a natural progression for private equity firms to
liquidate their investments post IPO and return capital to their
investors," China Minzhong said.
1224 (0424 GMT)