This article first appeared in The Edge Financial Daily on July 25, 2018

KUALA LUMPUR: Shares in CN Asia Corp Bhd hit limit-up in early trade yesterday, as investors reacted positively to its exit from the classification as a Practice Note 17 (PN17) company.

The petroleum storage tank maker saw its share price jump as much as 30 sen or 61% to 79 sen, with 1.31 million shares traded. The stock pared some gains to close at 76 sen, still up 27 sen or 55.1% from Monday’s closing.

On Monday, CN Asia announced that it had regularised its financial condition and no longer triggered any of the criteria under PN17.

CN Asia slipped into PN17 status on May 29, 2015, after its auditor expressed concern about its ability to continue as a going concern in its audited financial statements, as the shareholders’ equity of CN Asia on a consolidated basis was 50% or less of the issued and paid-up capital (excluding treasury shares).