KUALA LUMPUR (Sept 18): Rapid Synergy Bhd's share price fell 12.71% or RM3.06 to a low of RM21.02 on Monday (Sept 18) following the announcement of the sale of a land in Manjung, Perak, for RM22.89 million in cash.
The stock hit a high of RM24.36 in early morning trading, up 28 sen from last Friday’s closing price of RM24.08. However, the stock’s upward trend did not sustain as the share price slipped to a low of RM21.02 at the noon break, making it the biggest loser on Bursa Malaysia. The counter has a trading volume of 62,400.
At RM21.02, the group has a market capitalisation of RM2.24 billion.
On Friday (Sept 15), the precision tool-making company announced that it had disposed of 6,653/10,000 undivided share of a parcel of land in Manjung, Perak, measuring 303,487 sq ft, to Yokado Sdn Bhd.
The parcel of land comes together with a one-storey commercial shopping complex and a one-storey temporary building comprising a futsal court and a commercial lot.
Despite recording a gain of RM7 million from the proposed disposal, the group said the the sale consideration of RM22.89 million is 23.54% lower than the indicative market value of the apportioned properties of RM29.94 million calculated based on RM98.65 per sq ft, as last appraised in a valuation report by an independent valuer for the management’s internal review and assessment.
It is also lower than the company's original cost of investment in the properties of RM26.62 million in January 2006.
This is Rapid Synergy's third property disposal this year. In August and June, the company signed agreements to dispose of two pieces of land in Sitiawan for RM16 million and one property in Ipoh for RM15 million.
As at Dec 31, 2021, Rapid Synergy has a net debt of RM140.12 million, with a net gearing of 0.882 times.