Shares of Gul Technologies Singapore Ltd jumped 18.8 percent to a five-year high, after it said a party may be exploring the possibility of making an offer for the electronics manufacturing company.
By 0154 GMT, Gul shares were up 16 percent at S$0.136, with 6.9 million shares traded, 6.3 times its average daily volume over the last five sessions. Gul has surged 153 percent so far this year, compared with 16.2 percent for the FT ST Fledgling Index.
Gul said in a statement on Thursday that it was aware "a party is exploring certain corporate action that may or may not lead to an offer for the company," raising speculation it could be taken over or privatised.
"It sounds like it could be a privatisation and investors are riding on that speculation, especially since there has been a wave of delistings lately," said a local trader.
Singapore has seen a spate of privatisations, especially in the small to mid-cap space, including Cerebos Pacific Ltd and Meiban Group Ltd, due to low valuations and little liquidity.
Reporting by Charmian Kok in Singapore; email@example.com