KUALA LUMPUR (Oct 25): Serba Dinamik Holdings Bhd group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah sold 100 million shares or a 2.7% stake in the oil and gas service provider last week for RM1.5 million.

According to bourse filings, Mohd Abdul Karim disposed of the 100 million shares via off-market transactions on Oct 17, as well as on Oct 20, bringing his shareholding in Serba Dinamik to 538.6 million shares or a 14.52% stake.

Mohd Abdul Karim on Oct 20 sold a block of 50 million Serba Dinamik shares for 1.5 sen per share, a filing on Tuesday (Oct 25) showed.

Three days prior, on Oct 17, the group managing director had disposed of another block of 50 million shares for the same price, according to a filing on Oct 20.

Based on back-of-the-envelope calculations, this translates to RM1.5 million for offloading the 100 million shares.

In late December last year, Mohd Abdul Karim, together with Serba Dinamik and three other executives were charged by the Securities Commission Malaysia (SC) for submitting a false statement involving revenue of RM6.01 billion for its financial period ended Dec 31, 2020.

However, the charges against the accused were dropped in May this year, after they paid a total of RM16 million in compounds issued by the SC, following the Attorney General’s Chambers (AGC) decision to accept their representations.

Serba Dinamik’s troubles began in May 2021, when its former external auditor KPMG flagged audit discrepancies in regard to the group’s financials.

Its troubles continued after its refusal to comply with a bourse directive to release a factual findings update of the special independent review — conducted by Ernst & Young Consulting Sdn Bhd in regard to KPMG’s red flags — would result in the counter being suspended for seven months from October 2021 to May 2022.

Shares of Serba Dinamik ended half a sen or 20% lower at two sen on Tuesday, giving the group a market capitalisation of RM62.12 million. The day before KPMG raised the red flags, the counter traded at RM1.61. Since then, it has fallen 98.76%.