Hydoo shares close down 34pc after chairman Wong Choihing disappears
Hydoo International Holding ended at a record low as it tumbled 33.9 per cent yesterday after the firm said it had not been able to contact founding chairman Wong Choihing for more than two weeks.
The share price of Hydoo, a developer and operator of trade centres in mainland cities, fell as much as 47.3 per cent to a new intraday low of HK$1.26 before closing yesterday at HK$1.58.
Some 201.9 million Hydoo shares changed hands in the heaviest trading since it listed on October 31 last year. Its stock was suspended from July 2 till 9am yesterday.
Hydoo had announced on Monday it had not been able to contact Wong for over two weeks.
On the same day, brokerage Haitong International downgraded Hydoo to a "hold" from a "buy" in a reflection of "investor concerns regarding (company) uncertainties".
"As chairman, founder and key decision maker of the family-owned business, Mr Wong played a crucial role in the company's operations," said Haitong.
Wong owns 51.8 per cent of Hydoo, which includes 51.6 per cent jointly owned by him and his relatives, according to the Hong Kong stock exchange website. Hony Capital, a Chinese private equity firm backed by Legend Holdings, owns 14.9 per cent of Hydoo, the website said.
On July 16, Huang Dehong, an executive director of Hydoo and a nephew of Wong, took over all the duties of Wong with the assistance of Wang Dewen, chief executive of Hydoo and a son of Wong, Hydoo announced yesterday.
On May 13, chairman Wong relinquished his position as chief executive of Hydoo, which was assumed by Wang.
"Based on careful enquiries of the directors, taking account that none of the projects has suffered any material business interruption, and none of the existing contracts (including major loans or banking facilities) were suspended, the operations of the group remain normal," Hydoo said yesterday.
The cornerstone investors of Hydoo's offering included state-owned China Huarong Asset Management which invested HK$250 million for a 2.9 per cent stake, and state-owned China Taiping Insurance Group which invested HK$100 million for a 1.74 per cent stake.