(Updated)

Bursa suspends trading of Serba Dinamik securities from 2.30pm on Friday until further notice

Bursa suspends trading of Serba Dinamik securities from 2.30pm on Friday until further notice
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KUALA LUMPUR (Oct 22): Trading of Serba Dinamik Holdings Bhd's securities on Bursa Malaysia has been suspended from 2.30pm on Friday (Oct 22) until further notice by the bourse regulator to maintain an orderly and fair market in the trading of the engineering services provider's securities.

"The suspension is effected pursuant to paragraph 16.02(1)(c) of the Main Market Listing Requirements in the interest of maintaining an orderly and fair market in the trading of Serba Dinamik's securities," Serba Dinamik said in a Bursa filing.

"Accordingly, all structured warrants relating to Serba Dinamik will also be suspended at the same time," Serba Dinamik said.

Bursa said in a separate statement on Friday the bourse regulator "has resolved" to suspend the trading of Serba Dinamik securities including all structured warrants relating to the company from 2.30pm on Friday until further notice in the interest of maintaining an orderly and fair market in the trading of Serba Dinamik securities.

Prior to the suspension, Serba Dinamik's share price settled down two sen or 5.41% at 35 sen with 105.18 million shares traded at Bursa's 12.30pm break on Friday.

Meanwhile, the company's warrant price settled down 0.5 sen or 6.67% at seven sen with 16.31 million securities transacted.

At its current share price of 35 sen, Serba Dinamik has a market capitalisation of about RM1.3 billion based on the company's 3.71 billion issued shares.

Bursa's decision to suspend trading of Serba Dinamik's securities until further notice could have been prompted by news quoting Serba Dinamik's Bursa filings that Serba Dinamik group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah had sold the entire 55.9 million Serba Dinamik warrants directly owned by him.

According to Serba Dinamik's Bursa filings on Thursday (Oct 21), the 55.9 million warrants represented 6.34% of Serba Dinamik's issued warrants.

Serba Dinamik said Mohd Abdul Karim disposed of the warrants at between 7.5 sen and 8.1 sen each in four tranches between Monday (Oct 18) and Thursday (Oct 21).

On Monday, Mohd Abdul Karim disposed of 21.58 million warrants at 8.1 sen each, followed by two tranches of 21.3 million and 12.9 million warrants on Wednesday (Oct 20), Serba Dinamik said.

Serba Dinamik said that on Wednesday Mohd Abdul Karim disposed of the 21.3 million warrant tranche at 7.5 sen each while the 12.9 million warrant portion was sold at 7.7 sen each.

On Thursday (Oct 21), he sold the final tranche of 123,600 warrants at 7.5 sen each, according to the company.

A glance at Serba Dinamik's warrant price chart showed that Mohd Abdul Karim had sold the 55.9 million warrants at prices not far from the securities' record low price of 6.5 sen on Friday (Oct 22). The securities' record high closing price was 24.5 sen on Dec 7, 2020, according to the chart.

Serba Dinamik's Bursa filing on Dec 13, 2019 indicated that the company on Dec 6, 2019 issued 881.1 million free warrants in Serba Dinamik on the basis of two warrants for every five subdivided shares in the company.

Serba Dinamik said it listed the warrants on Dec 13, 2019 and that the securities' maturity date was Dec 5, 2024.

Serba Dinamik has been in the news since the end of May 2021, when the company announced that its former auditor KPMG PLT had informed the firm of some matters pertaining to its statutory audit.

On May 28, 2021, Serba Dinamik said in a response to Bursa's query that the matters highlighted by KPMG on May 3, 2021 related to, among others, certain customers' confirmation relating to sales transactions and trade receivables.

The matters highlighted by KPMG included "trade receivables balances and sales transactions for information technology contracts", the company said.

Read also:
Bursa orders Serba Dinamik to reveal factual findings on special independent review by Tuesday
Serba Dinamik MD Abdul Karim buys one million shares on Friday after selling off entire warrant holdings
Serba Dinamik shares, warrants fall after MD disposes of entire warrant holding
Abdul Karim disposes of entire warrant holdings in Serba Dinamik at near record low prices

Chong Jin Hun