Thursday 30 May 2024
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KUALA LUMPUR (Nov 1): Shares in KNM Group Bhd lost more than half of its valuation on Tuesday (Nov 1), after the company became an affected listed issuer under Practice Note 17 (PN17).

The stock fell nearly 60% to its intraday low of 3.5 sen, before paring losses to close at four sen per share, down 4.5 sen or 53%, giving it a market capitalisation of RM147.13 million.

KNM was the most actively traded counter on Tuesday, with 286.18 million shares traded.

On Monday, the company said it had become an affected listed issuer under PN17 on the basis that Paragraph 2.1(e) of the note was triggered in its audited consolidated financial statements for the period ended June 30, 2022, which were published on Oct 31.

In a Bursa Malaysia filing, the company said its auditor had highlighted a material uncertainty over its ability to continue as a going concern.

Upon triggering PN17 status, an affected listed issuer must announce the status of its regularisation plan or the status of its endeavour to formulate such a plan, whichever is applicable, or where neither a plan nor any endeavour to formulate such a plan has been undertaken, an appropriate negative statement to such effect.

The company must also within three months announce as to whether the regularisation plan will result in a significant change in the business direction or policy of the company.

The affected issuer must within 12 months submit the regularisation plan to the Securities Commission Malaysia (SC) to determine if the plan will result in a significant change in the business direction or policy of the company.

It also has to submit the regularisation plan to Bursa Securities if the plan will not result in a significant change in the business direction or policy of the company, and obtain Bursa’s approval to implement the plan, and implement it within the time frame stipulated by the SC or Bursa.

Edited ByLiew Jia Teng
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