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Denial may backfire on CyberBase

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SCMP Reporter

New World CyberBase is facing stock exchange ire after announcing a $328 million placement by shareholder Paul Y-ITC Construction only a day after denying it knew of any reason for recent share price increases.

The stock exchange is concerned about the share placement, and is investigating whether any misleading information was given to the public, according to sources.

On Thursday, CyberBase issued a disclaimer notice to the stock exchange at 2.44pm.

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In the notice that was requested by the exchange, CyberBase said it was unaware of any reasons for recent rises in the share price.

The share placement took place just after the market closed at 4pm.

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Paul Y-ITC said it would place 130 million CyberBase shares - with an over-allotment option of 40 million shares - at $2.525 each in an effort to raise $328.3 million to $429.3 million.

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