KUALA LUMPUR (June 16): Bursa Malaysia Securities Bhd has frozen the lower limit share price for Euro Holdings Bhd at RM1.21, following the sharp fall of the company’s share price in the past two days.

The freeze was due to the counter trading at static limit down for two consecutive days, Bursa said in a stock exchange filing today. The freeze is in accordance with the Rules of Bursa Malaysia Securities, Chapter 8.13 (5) Trading and Trading Manual Chapter 5 Trading Status (5.4) Freezing of Price.

Euro Holdings’ share price settled 51 sen or 29.65% lower at RM1.21 today, after some 3.89 million shares were traded — making it the third top decliner on Bursa. Yesterday, the group’s share price hit limit down after plunging 73 sen or 29.8% to RM1.72.

Earlier this year on Jan 15, the stock was trading at RM5.62. It has dropped 76.78% since. Its latest price of RM1.21 gives it a market capitalisation of RM970.3 million. In contrast, its market capitalisation stood at about RM4.51 billion on Jan 15. 

In a separate filing today, Euro Holdings said it is not aware of any corporate development relating to the group’s business and affairs that may account for the downtrend in its share price.

The office furniture maker has also been informed by its major shareholder SPA Furniture (M) Sdn Bhd that it has not entered into any negotiations, discussions or transactions that have not been previously announced, in regards to their shareholding position in Euro.

For the first quarter ended March 31, 2021 (1QFY21), the group posted a net profit of RM490,000 versus a net loss of RM3.06 million a year earlier. Quarterly revenue climbed to RM16.26 million from RM9.93 million.

On March 24, the company proposed a bonus issue of up to 3.21 billion shares, on the basis of four bonus shares for every one share held. It was the office furniture maker’s second bonus issue in less than six months. On Oct 8 last year, the group announced the issuance of up to 534.6 million bonus shares on the basis of two bonus shares for one share held.

In the March announcement, it said based on the five-day volume weighted average price of Euro Holdings shares up to March 16 of RM4.7019, the theoretical adjusted reference price of the bonus shares was 94 sen.

It added that the group's share base will increase to 4.01 billion shares following the bonus issuance, from 801.9 million shares now.