The High Court today continued an order to freeze assets of up to $997.4 million in relation to Hontex International Holdings Company and four of its wholly-owned subsidiaries.

The order was made by consent and follows an interim injunction granted to the Securities & Futures Commission urgently on March 29. The commission then launched proceedings against Hontex alleging the company's prospectus contained materially false or misleading information, which was likely to have induced investors to subscribe for Hontex shares.

The interim injunction will remain in force until further notice. The amount assets frozen represents the net proceeds raised from the investing public by Hontex in an initial public offer in December.

Since March 29 the commission has identified $832 million held in the bank accounts of Hontex and its four Hong Kong subsidiaries, which have been frozen. Inquiries are underway to identify more assets up to the value of $997.4 million.

If the commission succeeds in establishing its allegations that Hontex's financial position as outlined in its prospectus has been materially overstated, it will seek orders to restore the funds raised in the IPO to those who subscribed for the shares and continue to hold them and those who have purchased shares since the IPO.

On March 30 the commission issued a direction to the Stock Exchange to suspend trading in the Hontex shares to maintain a fair and orderly market and protect investors.

Hontex was listed on December 24. Its four wholly-owned subsidiaries are Easy Venture International, Star Guide Investments, Prosper Advance International and First Heritage Limited.