(Yicai Global) Oct. 28 -- Shares of Weixing New Building Materials rose by the exchanged-imposed limit after the Chinese plastic drainpipe supplier announced a SGD17 million (USD12.6 million) buyout of Fast Flow, a Singaporean designer of drainage systems.

Weixing’s stock price [SHE:002372] closed up 10 percent at CNY17.72 (USD2.77) today, giving the firm a market cap of CNY28.2 billion (USD4.4 billion).

Weixing will use wholly owned unit Vasen Singapore as the buyout vehicle, the Linhai, Zhejiang province-based company said in a statement late yesterday.

The move enables Weixing to combine its production and market capabilities with Fast Flow’s design prowess, increasing the business development space for domestic high-end residential and public buildings, it said. The move will also enable Weixing to expand in the southeast Asian market and boost its brand’s influence, with the completion of a new production base in Thailand.

Fast Flow took part in building drainage systems for several well-known landmarks including Beijing National Stadium, Shanghai Pudong International Airport, and Hilton Surfers Paradise Hotel and Residences in Australia, Weixing said.

Fast Flow had a net loss of SGD430,000 (USD319,000) in the first four months of the year and SGD2.75 million (USD2 million) in 2020 due to Covid-19, but its performance is recovering as the pandemic is gradually contained.

Editor: Futura Costaglione