KUALA LUMPUR(Jan 31): Reneuco Bhd's share price dropped to a historic low of eight sen on Wednesday as the renewable energy specialist faces a potential suspension for failure to submit its annual report on time.
Within the first hour of the market opening bell, Reneuco Bhd plummeted to 10 sen, a six sen or 37.5% drop from the previous day's closing price of 16 sen.
In the second trading session, the stock continued to be pounded by selling pressure, falling as much as 7.5 sen or 48.39% to eight sen, before partially recovering to close at 8.5 sen, still down by seven sen or 45.16%.
At 8.5 sen, the group's market capitalisation stood at RM95.39 million.
In a filing on Tuesday, Reneuco disclosed its inability to release the annual report for the financial year ending Sept 30, 2023 (FY2023) by the required Jan 31 deadline, as stipulated by the listing rules.
The delay in the report's issuance was attributed to additional time required by the external auditor to complete its audit. Simultaneously, the group is actively working towards meeting the Feb 8 deadline, which is the date by which it must submit the annual report to prevent the suspension of its shares from trading.
According to the Main Market Listing Requirements, Bursa Securities reserves the right to suspend the trading of a company's shares if it fails to submit the report within five market days after the expiration of the relevant timeframe (Jan 31), which in this case is Feb 8.
Reneuco was the second most actively traded stock on Bursa Malaysia on Wednesday with 125.89 million shares changing hands.
Having lost a susbtantial 72.13% since reaching a high of 30.5 sen on Jan 27, 2023, approximately RM246.83 million has evaporated from Reneuco's market capitalisation.
The group reported a net loss of RM125.05 million in the July-to-September 2023 quarter, on revenue of RM4.57 million. The loss was primarily attributed to an impairment of RM132.53 million.