KUALA LUMPUR (March 1): Brahim's Holdings Bhd shares tumbled as much as 71.4% in an active trade this morning after it lapsed into Practice Note 17 (PN17) status, as its shareholder equity fell below the 25% threshold.

At 11.30am, Brahim's shed 10.5 sen or 51.22% to 10 sen, after 8.82 million shares were traded so far.

The catering services provider said it is now an affected listed issuer with risks of being delisted.

"Based on the unaudited interim financial results of BHB (Brahim's) for the fourth quarter ended Dec 31, 2018, the shareholders' equity of BHB on a consolidated basis of less than RM40 million represented 25% or less of its issued capital. Hence, BHB is now regarded as a PN17 company," it said.

Brahim's said it has 12 months from now to submit a regularisation plan to the Securities Commission Malaysia (SC) and implement it within a time frame stipulated by the SC or Bursa Securities thereafter.

Brahim's has been in the red for five consecutive years, as it reported a widened net loss of RM103.14 million for the financial year ended Dec 31, 2018 (FY18), compared with a net loss of RM6.94 million in FY17.

During its heyday around 2013 and 2014, Brahim's was viewed as one of the stock market darlings, on track to becoming a mid-capitalised stock when it fetched a high of RM2.42. However in 2015, its share price slumped below RM1.

With an issue price of RM2 back in 1994, Brahim's has not managed to bounce back from the slump and has not been able to surpass the 60-sen level since June 2016.