KUALA LUMPUR (Dec 15): Nylex (Malaysia) Bhd was the fourth most-active stock as trading volume spiked more than nine times in Thursday’s (Dec 15) morning trade, amid the announcement on the construction of a light rail transport (LRT) system in Johor Bahru.
At the time of writing, Nylex’s share price grew 23.26% or five sen to 26.5 sen, translating into a market capitalisation of RM50.33 million. Trading volume swelled to 19.34 million, increasing 9.3 times from 2.07 million on Dec 14.
On Wednesday (Dec 14), the group announced that it has proposed to enter into talks with China's CRRC Changchun Railway Vehicles Co Ltd to build the LRT system.
The group announced the LRT project, which is connected with the railway shuttle link currently being built from Singapore to Johor Bahru (RTS Link), in March. The project, which is to be an integrated property development using the “transit-oriented development”, is subject to an ongoing feasibility study being completed and the grant of the concession award by the Johor government.
Looking at Nylex's share price performance since the beginning of the year, the stock rose to a high of RM1.81 on March 4 before plummeting 99.45% to just one sen on March 7.
Nylex is classified as a cash company after its parent firm Ancom Bhd took over all the assets and liabilities of Nylex for RM179.3 million (RM1 per Nylex share) in October last year. Ancom, which held a 50.3% stake in Nylex at that point, paid RM96.7 million for the remaining 49.7% stake it did not own, in a set-off arrangement.
The acquisition was satisfied via cash payment of RM50 million and the issuance of 31.1 million new Ancom shares valued at RM46.7 million (fixed at RM1.50 per Ancom share).
Its parent Ancom changed name to Ancom Nylex Bhd from April 5 this year.
Nylex’s managing director Datuk Siew Ka Wei holds 1.4 million shares or a 0.78% direct stake in the company. He also indirectly holds 77.88 million shares (43.32% indirect stake), Nylex’s annual report showed.