HPL share price jumps 9% as SGX queries unusual trading; Ong Beng Seng’s exit fuels speculation

Hotel Properties Limited (HPL) experienced a sharp increase in trading activity on 16 May 2025, with its stock rising as much as 9.3 per cent to S$4.72 during morning trade. The counter closed the midday session up 8.8 per cent at S$4.70, with 388,000 shares traded.

This represented a significant surge compared with the group’s typical trading volumes. The upward trend began on 15 May, with the stock continuing to rally the following day.

In response, Singapore Exchange Regulation (SGX RegCo) issued a formal query, describing the activity as “unusual price movements.” The regulator asked HPL to confirm whether it was aware of any previously undisclosed, materially sensitive information that could explain the surge.

SGX RegCo also directed the company to state whether it remained in compliance with its listing obligations and reminded HPL that it could request a trading halt if needed.

HPL replied on Friday afternoon that it was unaware of any material developments that could explain the stock movements and affirmed that it was fully compliant with SGX listing rules.

Leadership change fuels market speculation

The sharp rise in HPL’s share price follows developments surrounding its long-time managing director Ong Beng Seng, who stepped down at the company’s annual general meeting on 29 April 2025.

Ong, who founded HPL in 1980 and has been synonymous with the company’s growth, did not seek re-election but remains its controlling shareholder.

The company announced in April that Ong would be relinquishing his post to focus on treatment for multiple myeloma, a cancer of the plasma cells. His exit has raised questions over HPL’s long-term strategy and potential interest from new investors.

A 5 May report by The Edge Singapore highlighted speculation that HPL’s prime freehold Orchard Road properties could make it an attractive takeover target in the absence of Ong’s direct leadership.

Ong Beng Seng’s legal troubles

Market attention has also been drawn to Ong’s ongoing legal case linked to former transport minister S Iswaran, one of the highest-profile corruption cases in Singapore in recent years.

Ong, 79, faces two charges under the Penal Code—abetment under Section 165, and abetment of obstruction of justice.

The first charge alleges that Ong provided improper benefits to Iswaran, including a private jet flight to Doha worth US$7,700, hotel accommodation exceeding S$4,700, and a business class return ticket valued at S$5,700.

According to court documents, Ong later attempted to downplay the transactions when approached by the Corrupt Practices Investigation Bureau (CPIB). This led to the second charge, alleging obstruction of justice.

Iswaran, 62, was sentenced in October 2024 to 12 months’ imprisonment after facing 35 charges, most of them involving Ong.

Ong has indicated his intention to plead guilty. His court appearance, originally scheduled for 2 April, was postponed to 25 April 2025 for medical review. The court also permitted him to travel overseas between 28 April and 16 May for treatment and business, raising his bail from S$800,000 to S$1.6 million.

If convicted, Ong faces up to two years’ jail and/or a fine for the first charge, and up to seven years’ jail and/or a fine for the second.

Market outlook

Analysts note that speculation around potential corporate action is likely contributing to HPL’s share price movements, despite the company’s denial of any undisclosed material information.

HPL owns and manages a broad portfolio of hotels, resorts, and real estate, with a strong presence in Singapore’s Orchard Road, Bali, London, and other global destinations. Its valuable land bank, especially in prime areas, has long made it a subject of market interest.

One investment analyst told Business Times that, “with Ong stepping aside, investors are looking at succession and strategic options. The company’s assets are highly attractive, particularly in the current property cycle.”

However, others caution that without concrete developments, the stock’s sharp volatility could present risks. “Regulatory queries are a reminder that speculative trading can occur when markets lack clarity,” another market watcher said.

For now, SGX RegCo’s intervention underscores the need for transparency in market activity, while investors await further clarity on HPL’s direction.