Bursa queries HCK Capital over share price surge

Moody's outlook on the Korean banking system has been negative since May 2016.

KUALA LUMPUR: HCK Capital Group Bhd, whose share price has gained almost 60% since the start of the month, has been hit with an unusual market activity (UMA) query from Bursa Malaysia Securities.

The company, whose businesses range from property development to media, saw its shares reaching an intra-day record of RM6.60 before closing at RM6.20 on Wednesday, up RM1.05 with a thin volume of 62,200 shares changing hands.

Replying to the UMA query, HCK said it, after making due enquiry with its board of directors and major shareholders, was not aware of any previously unannounced corporate exercise, rumour or report to explain the price surge.
 
It pointed out that it had on April 7 proposed a 1-into-5 share split and subsequently a renounceable rights issue of 210.59 million warrants in HCK at an indicative issue price of 5 sen each based on one warrant for every two split shares. 

The rights issue of warrants was expected to raise gross proceeds of RM10.53mil based on the indicative issue price.

The bulk of the proceeds - RM6mil - will be set aside for property-related acquisitions and expenses.