CosmoSteel Shares Trade Above Bid. Will Offeror Raise Its Bid? What If It Doesn't?

CosmoSteel’s stock had been languishing for years (chart below) until an offer to privatise it popped up on 15 May 2025.

Instead of trading at a discount, the stock has consistently stayed above the bid—thanks in large part to CEO Jack Ong’s own buying spree.

It sends a clear message to the Offeror: if you want these shares, you’ll have to pay up.

Cosmosteel5.25 Cosmosteel distributes piping system components to the Energy, Marine and Other industries in Southeast Asia and other regions

Between May 20 and 27, he spent nearly $1,500,000 at an average of $0.22 a share (table below).

Meanwhile, large bid orders have appeared at $0.22 daily, presumably some coming from Mr Ong, preventing the Offeror from buying from the open market at $0.20 or lower.

Doubtless, other shareholders would not be tendering their shares to the Offeror, 3HA Capital, at $0.20.

Currently a 17% shareholder, Mr Ong is not part of 3HA Capital.

Unless 3HA Capital raises its bid, it risks falling short of the 50% needed to go unconditional—and that’s before even thinking about the 90% hurdle for compulsory acquisition and a delisting.

Here’s a breakdown of Mr Ong’s open-market deals:

Date	Shares Acquired by CEO	Average Price (S$)	Total cost (S$)
May 20	5,550,000	~0.22	$1,213,902
May 22	500,000	0.22	$110,000
May 23	446,200	0.22	$98,164
May 26	31,200	0.22	$6,864
May 27	22,600	0.22	$4,972

Offeror’s Stake in CosmoSteel:

As of the offer announcement date, Hanwa Co., Ltd. (via Hanwa Singapore) held 82,617,982 shares, representing 31.61% of CosmoSteel’s issued share capital.
The Offeror itself (3HA Capital) did not directly hold any CosmoSteel shares but Hanwa’s stake is considered “in concert” with the Offeror as Hanwa is part of the Offeror.

Possible Outcomes for Investors Buying above $0.20

Investors who accumulate shares at or above $0.20 now face several distinct near-term scenarios:

Offer Price Increase and Tendering Opportunity
The Offeror may raise its cash bid high enough for Mr Ong (and other shareholders, including his brother Ong Tong Yang who holds 7.63% stake) to accept.
Bid Stagnation and Share Price Reversion
Should the Offeror hold firm at $0.20, the offer will likely lapse.

Trading could then drift back toward historical levels ($0.13–$0.15), inflicting losses on those who bought at $0.20 or more.
Competing Bid Emerges
A rival suitor may step in with a higher offer. A bidding contest could push the share price beyond current levels.

See also an article published in 2022 which gave privatisation price scenarios at 20 cents, 28 cents and 38 cents.

CosmoSteel Shares Trade Above Bid. Will Offeror Raise Its Bid? What If It Doesn't?

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