Friday 29 Mar 2024
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KUALA LUMPUR (July 26): Apex Equity Holdings Bhd has seen 24.02% of its shares traded in an off-market deal.

According to Bloomberg, a block of 48.68 million shares, worth RM97.22 million, were traded at RM1.997 a piece at 5:09pm today — more than double today’s closing price of 89 sen in the open market.

A source contacted by theedgemarkets.com revealed that Apex Equity's largest shareholder Ace Investment Bank Ltd had transferred its stake to Ace Credit (M) Sdn Bhd, in order to meet capital adequacy ratio (CAR) requirements.

Ace IB is transferring its entire stake in Apex to Ace Credit, with the transaction being a “left hand to right hand” type that leaves the stake within the Ace Group, the source said.

It is known that Ace IB’s cost of investment is approximately RM2 per share. Given that the shares have declined 55.5% to close at 89 sen today, Ace IB being an investment banking entity has to offload the shares to meet the CAR.

In short, the CAR is used to measure a bank’s available capital, which is expressed as a percentage of a bank’s risk-weighted credit exposures.

The ratio is used to protect depositors and promote the stability and efficiency of the financial system.

Shares of Ace Equity closed 2.20% or two sen lower to 89 sen today, with 1,000 shares traded, giving it a market capitalisation of RM180.35 million.

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