KUALA LUMPUR (Oct 20): Bursa Malaysia has today issued an unusual market activity (UMA) query on loss-making bus operator Gets Global Bhd, due to the sharp rise in its share price and trading volume.
The exchange regulator has requested that Gets Global responds to its queries and disclose any investment decision, corporate development, rumour or report concerning the business and affairs of the group, and any other possible reasons that could explain the sudden spike in share activity.
Today, Gets Global shares shot up as much as 30 sen or 35.76% to RM1.12, valuing the counter at RM141.12 million.
Over the last five years, the counter had been trading at largely below 40 sen, but its share price had notably began to rise in mid-August this year.
Some 40.65 million shares were traded today, which is almost eight times its 200-day average volume of 5.86 million.
The company had not responded to Bursa’s query at the time of writing.
On Sept 9, Gets Global announced that it is jumping on the glove-making bandwagon, with plans to venture into the manufacturing, sale and marketing of gloves and other related activities.
To fund this new venture, the group has proposed a private placement of 158 million new shares at 55 sen per share to its major shareholders in order to raise gross proceeds of up to RM86.9 million.
The group intends to use RM38.9 million of the proceeds for the construction of glove manufacturing facilities and capital expenditure for the glove business, RM20.9 million for working capital for the glove business, and RM7.75 million for working capital of the existing bus operations.
Another RM19.1 million will be used for the repayment of bank borrowings, the group said.