KUALA LUMPUR (July 6): Serba Dinamik Holdings Bhd’s share price rose more than 8% in Bursa Malaysia morning trade today after closing up for four consecutive trading days on bargain hunting and as investors weighed the engineering solution provider’s outlook after the company formally appointed Ernst & Young Consulting Sdn Bhd (EY) as its special independent reviewer in a widely-watched corporate dispute involving the company's statutory audit matters.

At 10.05am today, Bursa’s most active stock Serba Dinamik’s share price had pared gains at 51 sen, with 352.33 million shares transacted, after rising as much as four sen or 8.25% to 52.5 sen earlier.

At 51 sen, the company had a market value of about RM1.89 billion based on its 3.71 billion issued shares.

Prior to today, Serba Dinamik’s share price already closed up for four consecutive days — last Wednesday, Thursday and Friday and yesterday — after the stock finished at a record low of 32 sen last Tuesday.

The company’s share price had fallen to current levels from its closing price of RM1.61 on May 25, 2021.

Last Friday, Serba Dinamik said the appointment of EY as the special independent reviewer of its financials aims to assess the accuracy of matters highlighted by the company's former external auditor KPMG PLT.

Serba Dinamik said in a Bursa filing that the decision to formalise EY’s appointment as the special independent reviewer followed discussions between the company and Bursa, during which EY was deemed "fit for the engagement” due to its reputation as one of the Big Four auditing firms.

Serba Dinamik has been in the news since the end of May, when the company announced that KPMG had informed the firm of some matters pertaining to its statutory audit.

According to Serba Dinamik’s Bursa filing on May 25, the company was in the midst of appointing an independent firm to commence a special independent review to assess the accuracy of the matters.

On May 28, Serba Dinamik said in a response to Bursa’s query that the matters highlighted by KPMG on May 3 relate to, among others, certain customers’ confirmation relating to sales transactions and trade receivables.

The matters highlighted by KPMG include "trade receivables balances and sales transactions for information technology contracts”, the company added.