Last week, Lotus Horizon (6063 HK) followed in fellow-contractors WK Group (2535 HK) and Superland Group Holdings (368 HK)‘s footsteps, whereby the controlling family exited, triggering an unconditional (massive) takeunder.
Now contractor KFM Kingdom (3816 HK) is suspended pursuant to the Hong Kong Code on Takeovers and Mergers. Its share price is up ~700% since January.
Controlling shareholders exiting given protracted headwinds for Hong Kong’s private residential and commercial property markets makes sense. Less clear are these irrational price movements before a deal is struck.
KFM Kingdom (3816 HK) is illiquid. Look away now if this is not your thing.
The Trade:
KFM’s’ shares are suspended, so there’s nothing to do, right now.
You could scope out other small‑cap industrial with a concentrated ownership.
I’m betting you need the inside track to get any advantage.