KUALA LUMPUR (June 12): Paragon Union Bhd (KL:PARAGON), which saw its share price hit limit-down in Friday’s afternoon session, said it is not aware of any reason that would have caused the unusual movement in its share price.
The company was responding to an unusual market activity (UMA) query by Bursa Malaysia.
The stock rose to RM4.65 before falling RM1.39 or 29.83% to its limit-down level of RM3.27 shortly after trading resumed in the afternoon. It closed at the same level, shedding nearly RM140 million in market value with 2.88 million shares traded.
Despite the fall, the stock is still 108.04% higher than a year ago.
As at Thursday’s closing price of RM4.66 per share, AskEdge data showed its 12-month trailing price-to-earnings (PE) ratio at 276.7 times, the highest among its peers. Its closest peer is bathroom and kitchen sanitary ware distributor Sorento Capital Bhd, which has a PE ratio of 17.6 times.
The carpet and automotive component manufacturer said it replied to Bursa’s query within two hours and is not aware of any corporate developments, rumours, or reports that could explain the unusual market activity.
“There is no corporate development relating to the company and its subsidiary companies’ business and affairs that has not been previously announced that may account for the trading activity including those in stage of negotiation/discussion,” said Paragon Union in the filing.
It reiterated that it is in compliance with Bursa’s listing requirements.
Paragon Union’s largest shareholder is executive chairman Koon Hoi Chun, who holds a 53.22% indirect stake through AKK Capital Sdn Bhd (39.54%) and Incredible Ark Sdn Bhd (13.68%). He also owns a direct 1.98% stake in the company.
He became a substantial shareholder in 2021 after acquiring a 60.41% stake via AKK Capital. Before that, he held no shares in the company.
Hoi Chun is the son of Koon Poh Kong, co-founder of Press Metal Aluminium Holdings Bhd (KL:PMETAL), and nephew of Koon Poh Keong. Poh Keong is among Malaysia’s wealthiest individuals and leads the Koon family business empire.