YGL Convergence Bhd (+ve)
SHARES in YGL Convergence Bhd (fundamental: 1.55/3, valuation: 0/3), a Multimedia Super Corridor-status information technology (IT) service management company and business solutions provider that operates in Malaysia, Singapore, Thailand, Hong Kong, and China triggered our stocks with momentum algorithm yesterday for the second time since the start of the year. The stock gained 1.5 sen or 6.52% to close at 24.5 sen with a volume of 8.67 million shares, exceeding its 200-day average volume of 652,308 shares.
In a statement to Bursa Malaysia, YGL has priced its new private placement shares at 14.5 sen each to raise funds for the IT specialist business expansion. According to YGL’s shareholder circular dated May 11, 2017, the private placement might involve up to 38.71 million new shares. YGL has announced its private placement had been completed following the listing of the new shares on Bursa’s ACE Market on July 6.
At the current share price, YGL is trading at 3.36 times its book value.