KUALA LUMPUR (Oct 25): Hong Leong Capital Bhd (HLCAP) emerged as one of the top gainers in the local bourse on Monday (Oct 25) after it rose as much as 36 sen or 4.27% to RM8.79. 

The stock opened seven sen or 0.83% higher at RM8.50 before it settled to close at an intraday high of RM8.79, giving it a market share of RM2.1 billion. 

It saw 1.69 million shares changed hands. 

It is unclear what the reason behind the rally is; however, the upward momentum of the stock is noticeable of late. 

In the span of less than two weeks, HLCAP’s stock has risen 25% to hit RM8.79 on Monday (Oct 25) from RM7.03 on Oct 12. 

On Oct 12, the share price had spiked past RM7 for the first time since November last year after the group told Bursa Malaysia on Oct 11 that its foreign shareholding had risen to 3.74% as at Sept 30, 2021.

Previously, the foreign shareholding stood at 2.83% as at June 30, 2021.

For the financial year ended June 30, 2021 (FY21), the group declared a final single tier dividend of 26 sen per share to its shareholders, to be paid on Nov 16, 2021. The ex-date of the dividend declared falls on Thursday (Oct 28). 

HLCAP is principally involved in investment banking, stockbroking business, futures broking, related financial services, nominees and custodian services, unit trust management, fund management and sale of unit trusts.

The group had previously been suspended for over five years for not meeting the required public shareholding spread.

It resumed trading on Nov 13 last year after its major shareholder Hong Leong Financial Group Bhd (HLFG) had completed a private placement of 27 million shares (equivalent to a 10.94% stake) in HLCAP, which has increased its public shareholding spread to 29.6%, thus meeting the 25% minimum requirement.

Recall in 2013, HLCAP grabbed headlines following a corporate battle between tycoon Tan Sri Quek Leng Chan and entrepreneur Datuk Dr Yu Kuan Chon, who thwarted the seasoned banker’s privatisation attempt on the group.

Yu, a medical doctor-turned-entrepreneur, whose flagship is Perak-based YNH Property Bhd, had emerged as a substantial shareholder in HLCAP after HLFG launched an offer to take the former private at RM1.71 per share in January 2013.

After that, Yu continued buying HLCAP shares and at its peak, owned close to a 9% stake, putting him in a strong position with regards to the privatisation of HLCap.

He had sold his shares periodically to meet the minimum 10% free-float threshold required for active trading.

Based on the latest info from HLCAP’s annual report, the businessman’s stake is 3.1% as at Aug 31, 2021. 

For FY21, HLCAP's net profit surged by 115.83% year-on-year to RM203.29 million against RM94.19 million while revenue rose by 20.59% to RM406.47 million from RM337.08 million in FY20.