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Highlights

  • Kelsian shares surged up to 4.2% to AU$3.25, hitting their highest level since May 19.

  • Its Singapore subsidiary, Tower Transit, secured a five-year bus operations and maintenance contract worth AU$27 million.

  • The stock is on pace for its fourth straight day of gains and its best month since November 2022.

Shares in Kelsian Group (ASX:KLS) jumped as much as 4.2% on Thursday to AU$3.25, reaching their highest level in nearly two weeks after the company announced a new contract win through its Singapore-based subsidiary. At last check, the stock was trading 2% higher, marking its biggest intraday percentage gain since May 13.

The rally was fuelled by news that Tower Transit Singapore, Kelsian’s wholly owned subsidiary, has been awarded a contract by Sentosa Development Corporation to operate bus services and carry out vehicle maintenance on the island, a major tourism and leisure destination in Singapore.

According to Kelsian, the five-year agreement is expected to generate total revenue of AU$27 million (approx. US$17.37 million) over its term, adding significant value to the company’s international operations.

Momentum Building

Thursday’s move places KLS on track for a fourth straight session of gains. Despite today’s upswing, Kelsian shares remain down 11.8% year-to-date.