Friday 29 Mar 2024
By
main news image

KUALA LUMPUR: Icon Offshore Bhd fell as much as 7.5 sen or 10% yesterday as shareholders continued to sell shares of the marine vessel provider, following expiry of the company’s initial public offering (IPO) lock-up or moratorium period.

The moratorium period expiry means major shareholders are no longer restricted from selling Icon shares following its listing. Icon was listed on Bursa Malaysia on June 25 this year under an IPO involving the sale of 510.77 million shares at RM1.85 each.

Yesterday, Icon shares fell to a low of 71 sen before paring its losses to settle at 74.5 sen, down 4 sen or 5.1% from the previous day’s closing, with 61.9 million shares done.

The stock was the third-most active entity across the exchange. For comparison, the FBM KLCI rose 5 points or 0.29%.

Icon shares extended their losses yesterday after plunging 19 sen or 19% to close at 78.5 sen on Monday.

Icon, which provides vessel support services to the oil and gas (O&G) sector, has been a closely watched stock amid weaker crude oil prices.

SJ Securities Sdn Bhd senior remisier Goh Kay Chong said the selldown in Icon shares was driven by institutional investors having the jitters over the weaker outlook of the O&G environment.

Brent crude steadied around US$60 (RM209.40) a barrel yesterday from about US$100 early this year on oversupply concerns. Lower crude oil prices have led to expectation that O&G support services providers like Icon would get fewer projects as oil companies cut spending.

“However, the stock (Icon) is likely to rebound when it falls to a point where institutional investors, who are able to withstand stronger shocks to stock prices, start buying Icon shares,” he told The Edge Financial Daily.

 

 

This article first appeared in The Edge Financial Daily, on December 24, 2014

      Print
      Text Size
      Share