This article first appeared in The Edge Financial Daily on July 29, 2019

Zecon Bhd (-ve)
TRADING of shares in Zecon Bhd (fundamental: 0.25/3, valuation: 1.5/3), which triggered our proprietary momentum algorithm last Friday for the third time this year, closed down 1.5 sen or 4.62% at 31 sen.

A total of 4.52 million shares were done, versus its 200-day average trading volume of 897,117.5 shares.

The group is principally engaged in construction, infrastructure, toll concession and property development.

On May 15, Zecon proposed to raise up to RM3.28 million via a private placement of up to 10% of its total issued shares to third party investor(s) to be identified later.

Zecon said the proposed private placement enables it to raise additional funds without incurring interest costs and provides an expeditious way of raising funds from the capital market.

The proposed private placement entails the issuance of up to 13.1 million new shares.

As of last Friday, Zecon was trading at 0.17 times its net book value.