King Wan Corporation's share price has surged up 44% to a high of 3.6 cents today, prompting a query from the Singapore Exchange Regulation (SGX RegCo).

The query was issued at 2.55pm, with SGX RegCo flagging the ‘unusual volume movements’ for King Wan shares.

As of 4.27pm, some 33.87 million King Wan shares have traded hands, more than triple the monthly average of 11.13  million shares over the last three months. It also makes it the fourth-highest counter in terms of trading volume today.

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In its query, SGX RegCo requested King Wan to reveal any information that may explain the trading activity. It also asked King Wan to confirm its compliance with the listing rules.

In its response posted later in the day at 9.26 pm, King Wan said it is now in talks with an unnamed party to set up a joint venture to carry out retrofitting and upgrading work. 

"There is no assurance that any transaction may materialise from these ongoing discussions."

"This is not expected to have any significant impact on the earnings per share or net tangible assets per share of the company for the
financial year ending 31 March 2022," the company adds.

Meanwhile, the company is "continuously" and "actively" exploring opportunities to build and diversify its business and revenue streams, and may from time to time engage in discussions with potential targets.

"The company is unable to conclusively attribute the information disclosed above to the trading activity," King Wan adds.

As at 4.28pm, shares in King Wan are trading up 1.1 cents or 44% higher at 3.6 cents.