Hot stock: Shares of China Environment surge on SGX approval of placement

SHARES of China Environment jumped 19 per cent on Monday morning, after it announced the placement of new ordinary shares and warrants.

The stock was up 2.9 cents at S$0.182.

This follows an announcement made on Dec 12, 2014, that China Environment, a provider of industrial waste gas treatment solutions in China, had entered into a subscription agreement and a warrant deed with GlobalWin International Consultants to allot and issue 72.5 million new ordinary shares and 72.5 million unlisted warrants to the latter for an aggregate amount of S$15.08 million.

A subsequent announcement on Friday revealed that China Environment had received the approval-in-principle (AIP) from the Singapore Exchange Securities Trading (SGX-ST) for the listing and quotation of its placement.

On Monday, China Environment further announced that the placement shares have to be placed out within seven market days from the date of the AIP.

"The AIP granted by the SGX-ST is not to be taken as an indication of the merits of the placement, the placement shares, the warrant shares, the company and/or its subsidiaries," said China Environment executive chairman Huang Min.