Shares in Singapore-based utility group Sembcorp Industries jumped as much as 4.3 percent to S$3.39 on Friday morning.
The sudden spike in share price comes amidst news reports that the company is gearing up to file for an initial public offering (IPO) of its Indian arm.
The IPO of its Indian unit which could see the company raise around $500-600 million, Mint newspaper reported on Thursday citing two people aware of the development.
Sembcorp's Indian arm comprises thermal and renewable power assets.
At 0525 GMT, Sembcorp Industries shares were up 4 percent at S$3.38. About 11 million shares changed hands compared to a 30-day average volume of 2.7 million shares.
Sembcorp Industries issued a clarification relating to the rumoured IPO plans of its Indian unit.
"We would like to clarify that we continually evaluate various commercial and financial options for our businesses, including our India business. At present, there are no developments warranting an announcement but in the event of any, the company would update the market as necessary," the company said in a statement to Singapore Exchange.
Shares in SembcorpMarine surged 8 percent to S$2.26 following an upgrade by brokerage Nomura. SembMarine was raised to a "buy" with a target price of S$2.70.