KUALA LUMPUR (Jan 2): Loss-making oil bunkering services provider Fast Energy Holdings Bhd shot up to a near one-year high on the first trading day of the year as the ACE Market-listed stock surged as much as 65.38% in early trade, before paring about half its gains.

The penny stock, which jumped 8.5 sen to 21.5 sen, later closed at 17.5 sen — still up 4.5 sen or 34.62% — valuing the company at RM37.67 million. Fast Energy was the third most actively traded stock across Bursa Securities on Tuesday, with 138.11 million shares traded, far higher than its five-day moving average (MA) of 4.54 million shares, and its 20-day MA of 1.43 million shares as well as its 90-day MA of 942,062 shares.

The reason behind the sudden surge was not clear, with the group’s last update on Bursa Malaysia was its third quarter ended Sept 30, 2023 (3QFY2023) results. The group reported a net loss of RM3.92 million for the nine-month period (9MFY2023), more than double the RM1.84 million net loss it incurred in the previous corresponding period.

The decline was in spite of revenue growing 41% to RM275.21 million for 9MFY2023, from RM195.07 million previously.

The group attributed the poorer financial performance to initial promotional and marketing costs and travelling expenses related to its new consumer electronics business.

In October shareholders approved its proposal to diversify into the sale of mobile devices such as smartphones, smartwatches and their related accessories.

The group’s annual report reveals a fragmented shareholding with the 30 largest shareholders collectively owning a 30.9% stake, the biggest among them, Bu Yaw Seng who owns 4.999%.

Executive director Tan Wye Chuan, who owns a 0.16% stake, is the undertaking shareholder for Fast Energy’s recently proposed one-for-one rights issue which aims to raise up to RM19.4 million in proceeds based on an illustrative issue price of eight sen per rights share.

Subsequent to the rights issue, Tan is estimated to own a 10.55% stake in the company, after injecting about RM2 million in proceeds through his undertaking.