KUALA LUMPUR (Nov 13): Hong Leong Capital Bhd (HLCAP) shares opened down 27 sen or 2.95% at RM8.88 today — the financial services company’s first day of trading since a suspension on March 26, 2015. HLCAP’s share trade resumed today after major shareholder Hong Leong Financial Group Bhd (HLFG) completed a private placement of 27 million existing shares in HLCAP to increase the public shareholding spread of HLCAP to 29.6%.
On Bursa Malaysia today, HLCAP fell 35 sen to RM8.80 at 9:01am.
HLCAP saw some 260,000 shares traded. At RM8.80, HLCAP has a market capitalisation of about RM2.17 billion based on the company’s 246.9 million issued shares.
According to HLCAP's Bursa filings this week, HLCAP major shareholder HLFG has completed a private placement of 27 million existing shares in HLCAP to increase the public shareholding spread of HLCAP to 29.6% as at Monday (Nov 9).
"Accordingly, the trading in HLCAP's shares will resume with effect from 9.00am, Friday, Nov 13, 2020,” HLCAP said.
HLCAP informed on Wednesday (Nov 11) that its principal officer Lee Jim Leng had given notice of her dealing in shares of HLCAP.
Lee had on Monday (Nov 9) acquired 250,000 HLCAP shares via private placement at RM4.80 each, HLCAP said.
HLCAP said the 250,000 shares represent a 0.101% stake in HLCAP.
HLCAP’s Bursa filings in February and March 2015 indicate that the trading suspension in the securities of HLCAP started on March 26, 2015 as HLCAP did not meet Bursa’s listing requirement that a listed issuer must ensure at least 25% of its total listed shares, excluding treasury shares, are in the hands of public shareholders. The public shareholding spread of HLCAP as at Dec 31, 2014 was 18.67%, according to HLCAP.
"As announced by the company on Feb 12, 2015, Bursa had written to inform the company that Bursa had decided to impose a suspension on the trading of HLCAP's securities with effect from March 3, 2015 for not meeting the required public shareholding spread unless the company submitted an appeal to Bursa Securities on or before Feb 23, 2015.
"As stated in an announcement dated Feb 23, 2015, the company had written to Bursa to appeal against Bursa’s decision to impose a suspension on the trading of HLCAP’s securities. As such, the suspension of HLCAP’s securities on March 3, 2015 has been deferred pending the decision on HLCAP’s appeal by Bursa.
"After due deliberation and having considered all the facts and circumstances of the matter including HLCAP’s written representations, the appeals committee has decided to dismiss the appeal of HLCAP and uphold the decision of the listing committee that a suspension be imposed on the trading of HLCAP’s shares for the breach of paragraph 8.02(1) of the Bursa Main Market Listing Requirements.
"In the circumstances, the trading in the securities of HLCAP will be suspended with effect from March 26, 2015,” HLCAP said then.