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Dec. 25 (NBD) -- Stock price of Legend Holdings has surged accumulatively by 50.95 percent for five days since Dec. 18, closing at 31.7 HKD (4.06 U.S. dollars) per share on December 22.

However, it still stands below its IPO price of 42.98 HKD (5.50 U.S. dollars).

Stock price rise is great news for Legend Holdings whose stock price has been tumbling since the company was listed.

The company itself couldn't figure out the reason behind the price surge in the first place. But the puzzle was solved very soon.

On December 21, Unisplendour Technology (Holdings) Limited (Unis Holdings) disclosed company filings, saying that investing in Legend Holdings is quite inviting and it has bought 2.92 million shares of Legend Holdings with 86.32 million HKD (11.06 million U.S. dollars) for three consecutive days.

On December 22, Unis Holdings announced it purchased additional 1.59 million shares of Legend Holdings.

Legend Holdings told NBD that the company is running well and welcomes those who recognize its brand and value to be its shareholders.

Legend Holdings added that the company will give full play to its unique business model to promote future growth. But Unis Holdings couldn't be reached for comment. 

Unis Holdings is critical to its mother company Unis Group in strategic planning, focusing on integrating industry resources by merger and acquisition.

However, the core business of Unis Holdings and Legend Holdings are not closely related to each other. It is being wondered why Unis Holdings purchased Legend Holdings shares.

According to earlier filings of Unis Holdings, the company adopted an investment strategy of low trading frequency and mainly targeted HK-listed high tech companies, covering telecommunication, semi-conductor, internet, computer and software industries.

The company filings of Unis Holdings didn't reveal whether it would continue to buy in stocks of Legend Holdings. However, the news of big buying initiated by companies related to Unis Holdings is common.

On December 8, Tongling Trinity Technology Co., Ltd disclosed that its shareholder Unis Group increased its share from 15 percent to 20.54 percent.

The news has drawn much market attention though Unis Group denied the attention to seek control over listed companies.

Email: tanyuhan@nbd.com.cn