KUALA LUMPUR (Jan 17): JF Technology Bhd (KL:JFTECH) co-founder and managing director Datuk Foong Wei Kuong continued to mop up shares in Cosmos Technology International Bhd (KL:COSMOS) from MSM International Ltd.
According to a bourse filing on Friday, Foong has bought another 14.36 million shares or an additional 5.6% stake in Cosmos from MSM, raising his stake in the integrated water solutions provider to 17.95% from 12.35%.
Bloomberg data showed that the latest transaction was done at 39.4 sen per share, the same price at which Foong purchased two blocks of Cosmos shares in December last year.
When contacted by The Edge, Cosmos’ largest shareholder and managing director Datuk Chong Toh Wee commented that Foong’s decision to acquire a larger stake in his company was “rooted in confidence”.
“By increasing his investment, Datuk Foong likely believes strongly in Cosmos’ growth prospects, especially in the water industry and non-revenue water solutions, as well as our company’s ability to generate strong returns in the coming years,” he said.
Therefore, Foong’s vested interest in Cosmos could suggest “greater focus on long-term growth and profitability”, said Chong.
Following the latest transaction, which values the block at RM5.66 million, Foong has become the second-largest shareholder of Cosmos, displacing MSM, which has reduced its stake in Cosmos from 11.6% to 6%.
Foong first emerged as a substantial shareholder of Cosmos after acquiring 13.946 million shares on Dec 16. He then acquired another 7.6 million shares on Dec 17.
Bloomberg data suggested that Foong bought the two blocks of shares at a price of 39.4 sen apiece or RM8.49 million.
MSM, meanwhile, disposed of the block of 7.6 million shares to Foong, as well as another 26.77 million shares on Dec 16, of which 13.946 million went to Foong. It is unclear who the remaining 12.825 million shares were sold to.
MSM on Dec 19 also sold another 5.13 million shares to ISET Engineering Sdn Bhd, which is linked to Cosmos’ Chong. The shares were sold at RM2.02 million or 39.4 sen per share as well — a discount of 7.29% to the closing share price of 42.5 sen on Dec 19.
Chong, following the acquisition, raised his indirect stake in Cosmos to 2%. He holds another 94.568 million shares or 36.87% of the company.
The ACE Market-listed company has been working with Germany-based Siemens as a solution partner to distribute and service the company’s electronic flow meters for the commercial sector.
Cosmos’ financials have rebounded in the latest quarter, after a downtrend that lasted six quarters since its transfer to the ACE Market from the LEAP Market in 2022.
For the six months ended Oct 31, 2024 (1HFY2025), Cosmos' net profit rose 23.9% to RM1.33 million, from RM1.07 million a year ago, while revenue rose 19.49% to RM9.33 million, from RM7.81 million, thanks to completion of previously delayed projects, a bourse filing showed.
Shares of Cosmos closed 1.5 sen or 3.8% lower at 38.5 sen at Friday’s closing, giving it a market capitalisation of RM98.75 million.