This article first appeared in Capital, The Edge Malaysia Weekly on July 8, 2024 - July 14, 2024
Notable filings
From June 24 to 28, notable shareholding changes in companies listed on Bursa Malaysia included those at CPE Technology Bhd (KL:CPETECH), which saw Oslo-based Norges Bank cease to be its substantial shareholder.
Norges Bank sold 3.2 million shares in the engineering support service provider, reducing its stake to below the 5% threshold for substantial shareholding. The bank had emerged as a substantial shareholder of CPE Technology in mid-April with 36.6 million shares, or 5.45% equity interest.
CPE Technology floated its shares on Bursa Malaysia in early December last year at an initial public offering price of RM1.07 that raised RM179.58 million. The stock ended trading at RM1.36 last Wednesday, translating into a market capitalisation of RM913 million.
At marine transport and offshore storage player EA Technique (M) Bhd (KL:EATECH), Voultier Sdn Bhd — the vehicle of Datuk Mubarak Hussain Akhtar Husin and Datuk Lai Keng Onn — emerged with a 51% stake, controlling 676.39 million shares in the company after a share issuance exercise. The entry of the duo is part of a restructuring plan that entails the issuance of 795.75 million new shares at 10 sen apiece, which would result in RM79.57 million being injected into the company and EA Technique being lifted out of the Practice Note 17 (PN17) category.
Mubarak and Lai are involved in industries such as construction, property development, electrical and mechanical engineering services, mining, food and beverage catering services, trading of motor vehicles, security supply services and human resources consultancy and training.
EA Technique’s share price closed at 35 sen last Wednesday, giving the company a market value of RM464.2 million.
During the week in review, MAA Group Bhd (KL:MAA) acquired 11 million shares in KNM Group Bhd (KL:KNM), strengthening its shareholding in the engineering company to 17.25% — or 697.64 million shares — from 10.81% in late March.
KNM, a PN17 firm, has had its fair share of issues. In early June, the Italian government again thwarted a plan by the KNM management to sell its wholly-owned FBM Hudson Italiana SpA for €16.5 million (RM84.9 million) to BM Carpenterie Oil & Gas Srl and Officine Piccoli SpA on a 60:40 basis.
The transaction failed to obtain Golden Power clearance from the Italian government. According to the International Association of Defense Counsel, Golden Power is the government’s special power to stop corporate transactions involving strategic assets on grounds of national security, among others.
This is the second time the Italian government has scuttled KNM’s plan to sell its Italian assets. The first attempt was in November last year, to UAE-based Petro MAT FZCO.
There is also mounting tensions brought about by a small group of disgruntled shareholders, who are looking to wrest control of the board of KNM. The stock closed at 8.5 sen last Wednesday to give the company a market value of RM343.7 million.
Goh Boon Leong, who has been trimming his stake in HHRG Bhd (KL:HHRG) (formerly known as Heng Huat Resources Group Bhd), further pared his shareholding to 18.17%, or 157.76 million shares, after disposing of 30 million shares during the week in review. A year ago, his stake stood at 30.41%.
Having slipped about 50% year to date, HHRG’s share price hit a 52-week low of 16.5 sen on June 27. Last Wednesday, the biomass and furniture player’s shares ended trading at 16.6 sen, giving the company a market capitalisation of RM143.3 million.
Notable movements
Amid continued interest in construction stocks, the share price of IJM Corp Bhd (KL:IJM) has gained more than 80% year to date, hitting a multi-year high of RM3.47 in intraday trading last Wednesday.
Local retirement funds, namely the Employees Provident Fund (EPF) and Kumpulan Wang Persaraan (Diperbadankan) or KWAP, have been actively trading the company’s shares. They were net sellers during the week in review.
EPF, which is IJM’s largest shareholder, sold 10.05 million shares and reduced its stake to 16.46% — or 577.26 million shares — from 17.64% a year ago. KWAP hived off 2.99 million shares in the company, trimming its holding to 9.71%, or 340.4 million shares.
At the closing price of RM3.37 last Wednesday, IJM had a market capitalisation of RM11.82 billion.
In mid-June, the share price of Alliance Bank Bhd (KL:ABMB) hit a multi-year high of RM3.98. The counter then shed 5.5% to close at RM3.76 last Wednesday. Nevertheless, the banking stock is still up 14% year to date.
During the week in review, EPF acquired 668,000 shares in Alliance Bank, strengthening its shareholding to 10.12%, or 156.75 million shares.
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