Zecon Bhd (-ve)
Zecon Bhd (fundamental: 0.25/3, valuation: 1.5/3) made it into our Stocks with Momentum list last Friday for the fifth time this year. The stock closed four sen or 11.94% higher to 37.5 sen, with 20.3 million shares done, compared with its 200-day average trading volume of 591,282 shares.
On May 15, the group proposed to raise up to RM3.28 million via a private placement of up to 10% of its total issued shares at an indicative issue price of 25 sen per placement share, to third-party investor(s) to be identified later.
Of the proceeds raised, RM3.2 million or 97.6% will be for working capital and the remaining RM80,000 or 2.4% will be for expenses related to the proposed exercise, expected to be completed by the third quarter of 2019.