KUALA LUMPUR (Jan 19): While Tanco Holdings Bhd’s share price has been on a downward spiral, a total of 6.07 million warrants were converted at the exercise price of 31 sen per share, the company’s filing to Bursa Malaysia showed. 

The conversion of this block of warrants cost RM1.88 million. 

These are warrants issued under Tanco’s bonus issue in August 2022, involving up to 1.47 billion free warrants on the basis of one warrant for every two existing shares held by entitled shareholders.

According to Tanco’s annual report, the largest warrant holder is currently its major shareholder Datuk Seri Andrew Tan Jun Suan with 92.45 million warrants or 12.11% held as at Oct 5 last year.

Tan had on Thursday bought 12 million shares, or about 0.59%, in the company on the open market as Tanco's share price tumbled. He now has a direct 11.56% stake in Tanco and an indirect 39.20% stake held under TJN Capital Sdn Bhd.

Tanco’s shares remained under selling pressure. The stock opened sharply lower at 25 sen on Friday against its previous day’s closing of 51 sen but managed to pare its losses to close at 36.5 sen. The stock has tumbled 28.4% this week.

Likewise, its warrant price has dropped sharply in tandem with its underlying mother shares. The warrant price has fallen from 27.5 sen last Friday to 12.5 sen, down 54.5% for the week.

The big fall on Tanco’s share price prompted Bursa Securities to suspend the counter's intraday short-selling on Thursday. Meanwhile, the company told the stock exchange that it was not aware of any corporate development, rumour or report that may have triggered the sharp fall.

The tumble in its share price wiped out all of its gains accumulated since October last year. Just Tuesday, the stock had hit its five-year high of 65.5 sen.