Noble group's shares jumped on Monday after the commodities trader said it was selling its unit Noble Americas Energy Solutions (NAES) to Calpine Corp for US$1.05 billion.
As many as 204.5 million shares were traded in the frenzy that followed, sending the troubled stock soaring nearly 7 percent to S$0.205 cents.
The deal value for NAES was, however, lower than the indicative price of more than US$1.25 billion that the company announced in August 2015.
The sale of Noble Americas Energy Solutions takes the Hong Kong-based commodities trader a step closer to raising $2 billion in a bid to cut debt.
Analysts expect the sale will ease investor concerns over the company's liquidity and balance sheet.
"The sale of NAES substantially completes the $2 billion capital raising initiative that we announced in June", Nobles' Co-Chief Executive Officers Jeff Frase and Will Randall said.
"With this divestiture, Noble will continue to reduce debt while also funding growth opportunities in our high-return businesses," the statement added.
The turbulence at Noble followed a double whammy the company suffered -- the severe downturn in the commodities segment and a damaging accenting scandal.
The commodity trader was battered by a $1.2 billion writedown on weak coal prices last year. Noble Group said in February it had a $1.67 billion loss for 2015, its first annual loss in almost two decades.
The loss followed a steady decline in its share prices following the scandal. Noble, one the world's largest traders of commodities, was accused of inflating its assets by billions of dollars, a claim it rejected.
Noble shares had fallen 14 percent on May 17 after Fitch Ratings put it on watch for a potential downgrade.
CEO Yusuf Alireza, a former Goldman Sachs Asia co-head, left the company unexpectedly late that month.
