KUALA LUMPUR (May 9): Seal Incorporated Bhd jumped to an intraday high of 47 sen, up over 40%, or 14 sen — the highest level since February 2018 — in the morning trading session on Tuesday (May 9), following news that businessman Aaron Chen Khai Voon is taking up a substantial stake in the company via share placement.
As at noon break, trading volume ballooned to 49.69 million, which is nearly 16% of its issued share capital of 311.4 million. The sharp rise in share price added RM35.8 million to its market capitalisation to RM138.6 million.
The emergence of a new major shareholder raises expectations that there might be asset injections in the near future.
Seal said in its bourse filing that the share placement will raise gross proceeds of about RM16.19 million, of which RM15.6 million is being earmarked for the company to expand its business to include renewable energy, for instance engineering, procurement, construction and commissioning (EPCC) for solar and related renewable energy activities.
Coincidentally, Chen owns a company called MSR Green Energy Sdn Bhd, which is involved in renewable energy. The firm undertakes EPCC project management and consultancy for solar photovoltaic projects.
Chen is also the largest shareholder of Genetec Technology Bhd holding 12.03% stake.
Seal, whose core business is property development, announced on Monday that it would be placing some 62.29 million shares, or 20% stake, to businessman Aaron Chen Khai Voon.
Chen will be the single largest shareholder in Seal holding a 16.67% stake in Seal's enlarged issued share capital after the placement, which is priced at 26 sen per share — a 21% discount to Monday’s closing price of 33 sen.
The placement came shortly after Seal completed a 10% private placement in March, raising RM7.08 million mainly earmarked for working capital.
Seal’s current largest shareholders are Datin Seri Tan Guik Lan with a 14.38% stake, followed by her son Koay Shean Loong with 7.99%.
Following the placement to Chen, Tan’s shareholding will be diluted to 11.98%, while Koay’s stake will be reduced to 6.66%.