The Stock Exchange of Thailand (SET) has told investors to exercise caution and study information carefully regarding the trading of One to One Contacts Plc (OTO) shares, citing irregular trading volume on June 12-13.
The SET placed OTO, which provides outsourced contact centre services to government agencies and corporations, in Level 1 trading regulations from June 6 due to unusual trading conditions without supporting factors. After the measure was imposed, share movement cooled down.
However, on June 12-13 the trading volume increased, concentrated among a few investors. Investors are advised to think carefully before trading OTO stocks, the bourse said in a statement on Wednesday
The SET asked brokers to supervise trades and authorities related to OTO securities to prevent trading orders that might be inappropriate, according to the Securities and Exchange Act.
In a filing to the SET on Wednesday, OTO clarified that the change in stock price does not affect the company's operations.
OTO shares dropped to 11.30 baht, down 30.3%, on June 12, then fell to 7.90 baht, down 30%, on Tuesday. On Wednesday the price continued to plunge, closing at 5.50 baht, a dip of 30.4%. According to the SET, the price has decreased by 54.3% in one week.
"If there are any developments that affect any of the company's important business operations, we will notify investors and adhere to relevant regulations," Kanawuthi Wattanadhirach, OTO's chairman of the executive committee and chief executive, said in the filing.
On June 8, OTO reported to the SET that Mr Kanawuthi would resign from his current position and Bandit Sapianchai, currently the deputy chairman, would succeed Mr Kanawuthi from July 1.
Mr Bandit said the company signed a cooperation agreement with Wave BCG, a subsidiary of Wave Exponential, regarding the clean energy business.
Wave BCG specialises in providing a full range of carbon credit trading services. The company provides consultancy to both buyers and sellers for project development and procurement of carbon credits.
OTO wants to move into technology that mitigates climate change, such as energy and carbon credit businesses, he said.
The company has a plan to expand its investments in renewable energy power projects to generate recurring income, which it sees as an important factor to support operating performance in 2023, said Mr Bandit.
Kitpon Praipaisarnkit, vice-president of UOB Kay Hian Securities (Thailand), said investors are sensitive to sudden changes in company management.
"Although the new management has expertise in the energy business, the swift turn is a surprise and investors often assume trouble, partly due to experience with other companies in the past," he said. "OTO stock price has fallen sharply. This is a money game. Investors should avoid it."
