KUALA LUMPUR (Oct 23): Industronics Bhd was Bursa Malaysia's 10th most briskly-traded stock on Monday, following news that it has inked a memorandum of agreement (MOA) with Echo Asia (Hong Kong) Ltd and CHEC Construction (M) Sdn Bhd to negotiate a proposed collaboration to construct an international duty-free city on Pulau Langkawi.
The counter closed at five sen, up one sen or 25% from four sen last Friday, giving it a market capitalisation of RM35.38 million.
Earlier, the stock rose to as high as 5.5 sen, its highest level since May 3.
The counter saw a trading volume of 49.65 million shares, over two times its 200-day average of 21.25 million shares.
Last Friday, the electronics company announced that it had signed an MOA with Echo Asia, an affiliate of Hong Kong-listed Echo International Holdings Group Ltd, and CHEC, a wholly-owned subsidiary of China Harbour Engineering Company Ltd.
According to a filing, Echo Asia is interested in building Asia's largest international duty-free city in Langkawi, and to appoint Industronics as the project management company. Echo Asia will provide the necessary details for the intended Langkawi duty-free city, including the required land size, floor area, design specifications and expected costs.
Meanwhile, Industronics is tasked with engaging with landowners to secure the land for the development of the duty-free city, including negotiations pertaining to pricing, terms and conditions.
CHEC, on the other hand, will offer consultation services for the design of the duty-free city and undertake construction. CHEC will also discuss potential investment in the project, which may involve contributing a portion of the construction costs associated with the duty-free city.
The MOA will be valid for one year and its renewal or termination will be subject to mutual agreement among the parties involved.