KUALA LUMPUR: Shares of GPRO Technologies Bhd were among the most actively traded on Bursa Malaysia yesterday, bucking the bearish sentiment on the local bourse. The stock surged 18.7% to 9.5 sen with 11.76 million shares changing hands.

The company, whose market capitalisation is barely RM23.7 million, saw the emergence of new major shareholder — Christian Kwok-Leun Yau Heilesen who bought 38.23 million shares or 15.29% equity interest in the ACE Market listed IT firm last Friday. Heilesen acquired the shares on the open market for RM3.25 million or 8.5 sen each.  

Coincidentally, Vital Research Sdn Bhd, the single largest shareholder in GPRO sold down its stake to 2.1% from 14.88% in two separate transactions on the open market.

Vital’s first share disposal took place last Thursday and involved the sale of 10.22 million shares at nine sen per share followed by the sale of 21.78 million shares the following day at 8.5 sen each.

Vital Research is controlled by GPRO executive chairman Tang Tiong Seng and Quek Kar Loon, according to the company’s annual report.

This is the second ACE Market- listed loss-making company that Heilesen has bought into in less than two months. The first was DVM Technology Bhd, which he later sold down in less than three weeks.

For FY10 ended Dec 31, GPRO incurred a net loss of RM2.3 million or 0.93 sen per share compared with RM5.14 million or 2.06 sen per share for FY09. Revenue came in at RM1.18 million against RM1.4 million the year before.

So far this year, the company is still in the red. It reported a net loss of RM1.34 million against RM1.58 million in the previous corresponding period.

Heilesen made news last month when he bought into DVM and requested an EGM to remove four directors from the company’s board. However, he sold down his stake barely two weeks after the share purchase.

To recap, Heilesen, a Danish national, and Raymond Yip Wai Man from Hong Kong emerged as substantial shareholders in DVM via the acquisition of its shares on the open market. Both had a combined stake of close to 20%  in the company before selling down their stakes.

While the duo were picking up shares on the open market, the company’s single largest shareholder, Datuk Goh Kian Seng, was paring down his stake to 5.05%, riding the upward trend on DVM’s share price.

Heilesen is the CEO of Funmobile Ltd, a Hong Kong-based mobile content developer.

Heilesen and Yip had intended to remove Tan Sri Abdul Rahman Abdul Hamid, Goh, Kamarudin Ngah and Lee Keat Hin from the board. They requested that both of them be appointed as new board members in DVM, apart from two other individuals — Douglas Arthur Choy, and Koo Seng Fatt.

Many were expecting a shareholder tussle to unfold in DVM, but Heilesen and Yip actually sold part of their shareholdings on the open market and ceased to be substantial shareholders seven trading days after they bought the shares.

The share disposal by the duo has raised many eyebrows. Is there really a shareholder fight? Since Goh wanted to trim his stake while Heilesen and Yip wanted to buy a stake in DVM, why didn’t they broker an off-market deal?

Until now, it is still not clear what plans Yip and Heilesen might have had for DVM.

But what is certain is that DVM’s share price has had a nice roller coaster ride in the past two months or so. The counter spiked up from a low of 10.8 sen end-July to a five-year high of 25.5 sen on Aug 2. It then plunged to eight sen yesterday.

This article appeared in The Edge Financial Daily, September 13, 2011.