KUALA LUMPUR (Dec 5): Comintel Corp Bhd’s share price surged over 333% after it resumed trade on Bursa Malaysia on Monday (Dec 5) following the upliftment of trading suspension of the stock.
As at 11.11am, the stock had gained 30 sen or 333.33% to a high of 39 sen, with 2.59 million shares transacted. At 39 sen, the company was valued at RM149.2 million.
Comintel is an investment holding company, with the synergistic group of information technology, telecommunications, manufacturing and research and development companies focusing on providing niche solutions under its subsidiaries.
In a statement last Friday, Bursa Malaysia Securities Bhd said with the completion of Comintel's private placement, the company's regularisation plan has been completed.
Comintel triggered the Practice Note 17 criteria on March 28, 2019 after its shareholders' equity fell below RM24 million or less than 25% of its issued capital.
In June, Comintel said its white knight will subscribe to a smaller stake of 56.49% in the company, from 72.47% envisioned previously, following a proposed revision of the regularisation plan announced by the company.
Comintel, which was planning to place 242.5 million new shares and 70 million redeemable convertible preference shares at eight sen apiece to raise RM25 million, will see a smaller subscription by JT Conglomerate Sdn Bhd, controlled by businessman Datuk Tan Kak Seng.
Aside from the fundraising of RM25 million, Comintel’s regularisation plan also entails a share capital reduction of RM90.96 million to eliminate its accumulated loss, as well as the acceptance of a construction contract worth RM188.77 million from Mightyprop Sdn Bhd.