KUALA LUMPUR (Jan 18): Jentayu Sustainables Bhd, responding to an unusual market activity (UMA) query from Bursa Malaysia after a sharp fall in its share price, said the recent completion of its private placement might be the reason for increased trading activity in the counter.
Last month, Jentayu announced a private placement of up to 57.24 million shares or 10% of its share base of 572.37 million shares.
The placement had raised RM66.39 million to fund the company's pre-development expenditures related to two hydropower plants in Sabah, new projects and working capital. Jentayu said Bursa had approved the listing of the placement shares early this month.
Previously, Jentayu had successfully raised RM11.1 million after placing out 96.94 million shares in July last year. The proceeds from that placement were also used for pre-development spending.
Apart from that, the loss-making company said it was not aware of any rumour or report concerning its business and affairs that may account for the unusual market activity.
Jentau shares opened unchanged at RM1.30 on Wednesday, but dived to a three-month low of 91 sen after dropping 39 sen or 30% by midday break.
The counter pared some of its losses to close the day at RM1.14, still down 16 sen or 12.31% from Tuesday. Some 26.73 million shares were traded.
At RM1.14, the company, which is involved in renewable energy, healthcare and trading of building materials, has a market capitalisation of RM500 million.
Over the last two weeks, Jentayu has been on a downtrend, with a decline of 14% from this year’s high of RM1.32 on Jan 5.
However, over the past year, the counter has risen by over 61%.
According to Jentayu's 2023 annual report, its largest shareholder is Datin Nurhaida Abu Sahid with 63.53 million shares or a 15.12% stake in the company, while her spouse and Jentayu executive chairman Datuk Beroz Nikmal Mirdin holds a direct stake of 4.61% or 19.39 million shares in the company, together with an indirect stake of 15.12%.
Another substantial shareholder is Morgan Stanley, which has a 9.32% stake in the company after acquiring an additional 911,300 shares on Jan 15.
Earnings wise, Jentayu booked a net loss of RM7.15 million for the first quarter ended Sept 30, 2023 versus a net profit of RM11.12 million a year earlier when there was a gain on disposal of investment property of RM16.22 million. Revenue increased 24% to RM7.57 million from RM6.1 million.
Read also:
Bursa issues UMA query to Jentayu as shares plunge to three-month low, prompting short-selling halt
Jentayu says pre-development spending on Project Oriole is part of industry norms
Jentayu plans another placement to raise up to RM63 mil
Jentayu Sustainables’ executive director Baevinraj promoted to CEO