KUALA LUMPUR (June 3): Serba Dinamik Holdings Bhd, whose share price tumbled in early of the week amid audit woes, climbed as much as 7.88% or 6.5 sen to 89 sen after the opening bell this morning.
However, selling pressure emerged soon. As at 10.15am, the stock had pared gains at 84 sen, still up 1.5 sen or 1.82%.
The counter was the most actively traded stock this morning, with 161.47 million shares changing hands. Its turnover was also the highest at RM141.12 million across the board. The stock had plunged 47.83% after the audit issues were made public.
One of its substantial shareholders Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has trimmed its shareholding in Serba Dinamik. The pension fund sold 26.03 million shares, or 0.7%, according to a filing with Bursa Malaysia.
The institutional shareholders, namely the Employee Provident Fund (EPF) and Permodalan Nasional Bhd (PNB), will be closely watched if they are offloading their shares.
The EPF holds a 10.18% stake, while Amanah Saham Nasional Bhd, a unit of PNB, owns 6.15%. Both the EPF and PNB have voiced concern over Serba Dinamik’s accounting issues flagged by its external auditor KPMG PLT pertaining to its statutory audit.
In a new twist to its audit woes, Serba Dinamik yesterday announced that its second largest shareholder Datuk Abdul Kadier Sahib, who is also a member of the company’s audit committee, had changed his mind and decided not to remove KPMG as the company’s external auditor.
To recap, Abdul Kadier, who is a non-independent non-executive director holding a 15.96% stake in Serba Dinamik, last week wanted to call for an extraordinary general meeting (EGM) to vote for a resolution to remove KPMG, and to appoint BDO as the new external auditor.
However, the proposal to change the auditor raised concern that the truth of the audit issues would not be uncovered if KPMG is removed from the audit process.
KPMG has raised issues relating to sales, trade payables and material on site balances involving 11 parties which accounted for total sales transactions of RM2.32 billion, a trade receivables balance of RM652 million and material on site balances of RM569 million.
Read also:
Fitch downgrades Serba Dinamik to 'B-', places it on Rating Watch Negative
Serba Dinamik audit issue may hit KPower, SCIB more than their share prices
Serba Dinamik shareholder Kadier changes mind about terminating external auditor
Serba Dinamik boss bought more shares as price tumbled
Serba Dinamik's major shareholders EPF and PNB express concern over audit issues
KWAP sold shares in Serba Dinamik after audit issues; shareholding trimmed to 4.53%