This article first appeared in Capital, The Edge Malaysia Weekly on September 12, 2022 - September 18, 2022
Notable filings
From Aug 29 to Sept 2, notable filings by Bursa Malaysia-listed companies included those from Ivory Properties Group Bhd.
Founder Datuk Low Eng Hock, who is also the single largest shareholder, sold 73.32 million shares, or a 14.96% block, in the Penang-based property development company on Aug 30 for just under RM3.1 million in an off-market transaction. That reduced his direct holdings to 27.25%, with deemed interested in another 5.76% stake. About 68.24 million shares were sold at 4.5 sen each while 5.08 million shares were sold at half a sen each, an Aug 30 filing shows.
The buyer is likely Datuk H’ng Choon Seng, managing director of Heng Huat Resources Group Bhd. A Sept 2 filing shows H’ng emerging as a substantial shareholder of Ivory Properties after buying 73.32 million shares, or a 14.96% block, off-market on Aug 30. The single largest shareholder of Heng Huat, H’ng owns just over 25% of the Penang-based company that manufactures and trades biomass materials.
Last month, Ivory Properties — which has been in the red since FY2022 ) — slipped into Practice Note 17 (PN17) status after its external auditor flagged material uncertainties about the company’s ability to continue as a going concern.
Two new substantial shareholders emerged in late August at textile-turned-digital services company, Pertama Digital Bhd. Datuk Seri Dr Nik Norzrul Thani Nik Hassan Thani and former chief justice Tun Zaki Tun Azmi each bought just over 11% equity interest.
Zaki, who was named chairman on May 30, is no longer a non-independent non-executive director as he is deemed interested in a 13.8% stake as at Aug 25, following share purchases by Mypay Capital Sdn Bhd (50 million shares, or an 11.54% stake, for RM25 million or 50 sen each) and his spouse Nik Sazlina Mohd Zain (five million shares at 50 sen each), filings show.
Meanwhile, Nik Norzrul — chairman of Malaysian Rating Corp Bhd and T7 Global Bhd and a director of several public-listed companies, including Amanah Saham Nasional Bhd and Sime Darby Plantation Bhd — bought 50.12 million shares, or an 11.6% block, in Pertama Digital on Aug 30.
Its share price rose 11% to RM1.30 on Sept 1 after the announcement and went on to close at RM1.42 on Sept 5 before giving up some gains to close at RM1.37 on Sept 7. Pertama Digital, which did not win a digital bank licence from Bank Negara Malaysia in April, in late June told reporters that it was in talks with five banks to select a partner to set up the country’s first neobank.
Notable Movements
At its recent high of RM4.18 on Aug 30, shares of AMMB Holdings Bhd are up one-third year to date (YTD).
Filings show the Employees Provident Fund (EPF) continued to mop up shares in the country’s fifth largest bank by assets. During the week under review, the EPF bought 6.2 million shares to increase its stake to 10.64%. As at end-April, it had 9.6% equity interest. Closing at RM4.05 on Sept 7, the stock is still about 28% higher YTD.
AMMB has also bought back its shares, spending almost RM13.2 million to acquire 3.26 million shares from Aug 19 to Sept 6. This came on the heels of the completion of AMMB’s disposal of its insurance arm AmGeneral Insurance to Liberty Insurance Bhd (LIB) for RM2.29 billion.
Filings show the EPF paring some shares in CIMB Group Holdings Bhd. During the week under review, the fund sold 34.09 million shares, reducing its stake to 15.3%. In early July, the EPF had 16.44% equity interest in the country’s third largest lender.
CIMB shares are down about 1% YTD as the counter closed at RM5.40 on Sept 7. If measured from its recent high of RM5.50 on Sept 1, however, the share price had gained 10.2% in just over two months from RM4.90 on June 24. After second-quarter earnings (released Aug 30) beat estimates, Maybank Investment Bank Research, for example, upgraded its call on CIMB to “buy” from “hold” and raised its target price by 15% to RM6.20.
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