KUALA LUMPUR (Dec 2): Apex Equity Holdings Bhd's share price has leapt over 13% a day after announcing that the Securities Commission Malaysia (SC) initiated legal action against the company in relation to its second-largest shareholder, ACE Group.
At 3.19pm on Friday (Dec 2), the counter gained 13 sen or 13.54% to an intra-day high of RM1.09, with just 51,400 shares traded. At RM1.09, the company has a market capitalisation of RM254.14 million.
Additionally, Bursa Malaysia announced that the dynamic price threshold mechanism on Apex Equity shares will be uplifted from 3.30pm until 3.40pm.
“During this period, orders can be matched within 30% or 30 sen up and down of the reference price,” it said, noting that the reference price is 96 sen with an upper of RM1.26 and lower limit of 66 sen.
On Thursday (Dec 1), Apex Equity announced that the SC is seeking a court declaration that its subsidiary Apex Securities Sdn Bhd has contravened securities laws, and that ACE Holdings Bhd, a part of the ACE Group, has been knowingly involved in the contravention.
The regulator claimed that Apex Securities contravened the securities laws “as ACE has become a controller of Apex Securities, when ACE is not a fit and proper person” to do so.
The commission is seeking a court order to refrain ACE from being a controller, not just of Apex Securities, but of any holder of a capital markets services license (CMSL). It also wants to remove relevant directors and senior management personnel from Apex Equity and Apex Securities.
ACE Group holds a 14.98% stake in Apex Equity through ACE Credit (M) Sdn Bhd. ACE Group is controlled by Datuk Calvin Choong Chee Meng, who was appointed as managing director of Apex Equity earlier this year.
According to the Capital Markets and Services Act, a controller of a CMSL holder controls 15% of the company, or has the power to appoint a majority of the directors of the company, or has the power to effect decisions in the business.
In August, The Edge reported that at least three of seven Apex Equity directors at the time were linked to ACE Group — including Choong, Datuk Celine Leong Wai Leng, and Lim Kok Eng.
As for the remaining four, one of them, Apex Equity’s non-executive chairman Datuk Ahmad Redza Abdullah, resigned on Sept 22, just three months after he was appointed to the post on June 22.
Apex Equity said it is seeking legal advice “and will strenuously defend” the case. The matter is fixed for case management on Dec 12.