KUALA LUMPUR (Oct 30): Ni Hsin Group Bhd (KL:NIHSIN) suffered one of its worst days on record, prompting the exchange to demand the cookware manufacturer to explain the unusual market activity.
Bursa Malaysia has queried Ni Hsin whether there is any corporate development that has not been previously announced, including those in discussion, as well as any rumour or report that may account for the trading activity.
Ni Hsin was also asked to declare its compliance to listing regulations, especially on immediate disclosure obligations.
The stock fell to as low as 15 sen in Friday trading. Ni Hsin ended the day at 26 sen, down 11 sen or a smidge below 30%, as more than 66 million shares changed hands. At its last price, the company had a market capitalisation of about RM151 million.
The decline comes just three days after the company's shares hit an all-time high of 51 sen.
Before the reversal, shares of Ni Hsin jumped six times on the back of massive trading volume in a rally that began on Aug 20. News of a quarterly loss a week later failed to stop the stock’s surge, and Ni Hsin climbed further as the company announced on Sept 8 that it was diversifying into electric vehicle business.
On Oct 27, Ni Hsin proposed a one-for-two bonus issue of up to 312.65 million free warrants. Any proceeds raised will be utilised for Ni Hsin’s working capital and capital expenditure.
Ni Hsin plans to spend 95% of the proceeds to purchase inventories such as electric bikes, batteries, and charging cabinets, as well as on marketing, after-sales service and administrative expenses. The balance will be used to expand assembly lines, production and storage facilities.