KUALA LUMPUR (June 24): News that Scomi Group Bhd has signed an agreement with Prasarana to deliver seven four-car vehicles for the KL Monorail at a price of RM122 million has helped to lift the group's share price by as much as 25% in the afternoon trade.

At 4.55pm, the stock soared 33% or two sen to eight sen, with 49.5 million shares changing hands.

Scomi announced to Bursa Malaysia that its unit Scomi Transit Projects Sdn Bhd (STP) and Prasarana Malaysia Bhd had on last Friday signed an agreement involving the design, manufacture, completion and delivery of seven four-car vehicles for the KL Monorail.

The announcement said the completion agreement is conditional upon issuance of an acceptance certificate by Prasarana after the expiry of a monitoring period following completion of remedial works to put five four-car monorail trains into revenue service.

It said the works (for the seven four-car vehicles) are to be completed within 18 months from the issuance of a notice to proceed by PMB.

Scomi has been in the news of late. Last month, Scomi unveiled its recapitalisation exercise that involves making a cash call to raise RM214 million, nearly three times more than its market capitalisation of RM72 million then. The plan aims to bring down its borrowings.

The recapitalisation exercise also involves share consolidation, liabilities settlement and share capital reduction. The group fixed the price for its rights issue at 18 sen per share, which is higher than its current market price.