KUALA LUMPUR (May 15): MIDF Amanah Investment Bank Bhd will cease to be the sponsor of medical equipment provider LKL International Bhd with effect from tomorrow (May 16, 2020), as LKL has successfully maintained the services of a sponsor for at least three financial years since its listing. This is in accordance with Bursa Malaysia listing rules.

"On behalf of the board of directors of LKL, MIDF is pleased to inform that the company has successfully complied with Rule 3.21(1) of the ACE Market Listing Requirements of Bursa, whereby an applicant must secure and maintain the services of a sponsor for at least 3 full financial years after its admission to the official list of Bursa.

"Therefore, MIDF shall cease to act as the sponsor of the company with effect from May 16, 2020,” MIDF said in LKL’s filing with Bursa today.

LKL’s Bursa filings indicate that the company was listed on the ACE Market on May 16, 2016. LKL’s initial public offering (IPO) involved a public issue of 113 million new shares at 20 sen each, the filings showed.

Alliance Investment Bank Bhd was the principal adviser, sponsor, sole underwriter and placement agent for LKL’s IPO then, according to LKL.

On July 15, 2019, LKL said the company and Alliance had come to a mutual agreement on the resignation of Alliance as the sponsor of LKL with effect from July 16, 2019.

"In replacement thereof, MIDF had been appointed as the new sponsor of the company with effect from July 16, 2019,” LKL said.

At Bursa’s 12.30pm break today, LKL’s share price settled down 1.5 sen or 2.63% at 55.5 sen, with a share volume of 18.64 million units.

At 55.5 sen, LKL has a market capitalisation of RM237.98 million.