This article first appeared in Capital, The Edge Malaysia Weekly on May 31, 2021 - June 6, 2021
Notable filings
FROM May 17 to 21, notable shareholding changes at Bursa Malaysia-listed companies included those at jewellery distributor Aurora Italia International Bhd.
During the week in review, bourse filings showed Aurora Italia co-founder and director Datuk Wira Louis Ng Chun Hau increasing his shareholding in the LEAP Market-listed company by another 128 million shares, taking his total direct shareholding to 257.62 million shares, or 41.15%.
Aurora Italia also saw the emergence of two substantial shareholders in Ng Jing Chia and Ng Yan Xun, both children of Chun Hau. Jing Chia holds 128 million shares, or a 20.45% stake, while Yan Xun has 64 million shares, or 10.22% of the company.
Their emergence as substantial shareholders follows the acquisition by Aurora of 100% equity interest in PG Jewel Sdn Bhd from the trio (Chun Hau and his children) for RM32 million in April, which is to be satisfied by the issuance of 320 million new shares in Aurora at an issue price of 10 sen each. The 320 million shares represent 51.11% of the total number of Aurora’s issued shares.
Over at Iskandar Waterfront City Bhd (IWC), Tiong Nam Logistics Holdings Bhd managing director Ong Yoong Nyock is no longer a substantial shareholder of the property developer and builder after selling 4.1 million shares on April 26. The transaction price was not disclosed, but IWC closed at 48 sen on that day.
Ong emerged as a substantial shareholder of IWC after acquiring 53.57 million shares, or a 5.82% stake, through a private placement exercise on April 21.
KTG Bhd announced on May 21 that information and communication technology solutions provider MMAG Holdings Bhd had emerged as a new substantial shareholder, after acquiring 35 million shares, or a 5.07% stake, on the open market. Subsequent to the transaction, MMAG’s 26.48% shareholder Chan Swee Ying had also emerged as an indirect shareholder in KTG, which is involved in the ceramics and pottery and property industries as well as moneylending.
During the week in review, Rohas Tecnic Bhd director Tan Sri Nik Awang @ Wan Azmi Wan Hamzah continued to mop up shares in the utility infrastructure company on the open market.
He bought a total of 3.61 million shares in seven blocks. The transaction prices were not disclosed, but Rohas Tecnic’s share price closed at between 35 sen and 36 sen during that period.
The transactions take Wan Azmi’s total direct shareholding in Rohas Tecnic to 84.21 million shares, or a 17.82% stake. He also held an indirect stake of 26.45%, or 125 million shares, as at May 25.
On May 18, Widetech (Malaysia) Bhd announced the emergence of a new substantial shareholder in MyEG Services Bhd (MyEG) group managing director Wong Thean Soon after he acquired 4.18 million shares, or a 9.33% stake, in the precision spring manufacturer and management services provider via an off-market transaction on May 12. Wong mopped up another 800,000 shares in Widetech on May 18, bringing his total direct shareholding to 4.98 million shares, or 11.12%. He also holds an indirect stake of 2.96%, or 1.32 million shares.
At the same time, Lim Hian Yu Sdn Bhd ceased to be a substantial shareholder of Widetech, following the disposal of 5.5 million shares via an off-market transaction on May 12. The stock closed at RM2.55 that day.
Notable movements
Widetech’s share price rose 23% to RM3 on May 21 from RM2.44 on May 17. The stock has surged 435% year to date, closing at RM3.21 last Tuesday to give the company a market capitalisation of RM143.66 million. It hit a multi-year high of RM4 on May 20.
So far this year, the company has been slapped with an unusual market activity (UMA) query by Bursa Malaysia twice over the sharp rise in the price and trading volume of its shares. On both occasions, Widetech said it was unaware of any corporate development relating to its business and affairs that may account for the UMA. However, it did mention the recent emergence of MyEG boss Wong as a new substantial shareholder.
The company slipped into the red for the cumulative nine months ended Dec 31, 2020 (9MFY2021), with a net loss of RM2.15 million compared with a net profit of RM1.03 million a year ago, on the back of a provision made on the amount due from an associate of RM2.06 million. Revenue for 9MFY2020 was up 23% year on year to RM7.92 million. It had yet to release its financial results for 4QFY2021 at the time of writing.
The share price of Y&G Corp Bhd has also seen significant movement of late. The stock is up 111% year to date after closing at RM1.20 last Tuesday, valuing the property developer at RM262.17 million.
The counter had hit limit up thrice in four trading days. From 56 sen on May 12, it hit the 30 sen limit up on May 17 and 18 before its trading was suspended for a day. The stock resumed its upward trajectory on May 20, hitting limit up again at 34 sen or 29.31% higher to RM1.50 — above its net book value of RM1.35 per share — prompting Bursa to slap it with a UMA on the same day. In reply, the company said it was unaware of any reason for the sharp rise in its share price and trading volume.
Over the four-day period, its trading volume had ranged from 58,300 to 200,300 shares. In the past six months, it has averaged 2,400 shares.
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