White knights performing well with better market


  • Business
  • Saturday, 08 Nov 2003

BY PAULINE S.C. NG

THANKS to an ebullient stock market, white knights of ailing companies are looking so much more dashing these days. 

Take some of the white knights of counters that were recently re-listed. 

On its KLSE debut on Thursday, VTI Vintage – which took over Penas Corp Bhd's listing – opened at a premium of 78 sen over its indicative price of RM1. It closed at RM2.04 on the day's highest volume of 46.7 million shares.  

On Oct 28, Equine Capital Bhd recorded a 20 sen premium over its reference price of RM1. The property player had assumed the listing of Kuala Lumpur Industries Bhd. 

Seng Hup Corp Bhd's white knight, Salcon Engineering Bhd, also rode on the bullish up-tick in the stock market, the water treatment specialist registering a 67 sen premium over its offer price of RM1.20 on listing day. 

Likewise, AWC Facility Solutions Bhd, Trans Capital Holding Bhd's rescuer, made a 30 sen premium over its base price of 60 sen. 

And then there were the oil and gas “plays” and their much-awaited re-listing on the KLSE. 

The first to make its debut this year was offshore fabrication operator OilCorp Bhd, which netted a nice 48-sen premium over its base price of RM1.10 on relisting on Aug 5. OilCorp had assumed the listing previously held by Abrar Corp Bhd. 

That relisting served to whet investor appetite in oil and gas stocks. So when Sumatec Resources Bhd (formerly MGI Corp Bhd) made its debut, it notched up a quick RM1.20 over its offer price of RM1.  

A corporate adviser who declined to be named, agreed that the better market had been a great boost for new re-listings.  

He said one of the white knights had earlier been in danger of its rights issue being under-subscribed, but the market momentum and a roadshow had led to its rights being eventually oversubscribed. 

There were, however, re-listings that failed to sizzle. 

Kumpulan Hartanah Selangor Bhd (a reverse takeover of Brisdale Holdings Bhd) and Encorp Bhd (assuming the listing of Great Wall Plastics Industries Bhd), both opened flat at their reference price of RM1. 

There were fewer re-listings last year, but even then, most seemed to have enjoyed investor support.  

The share price of My-Infotech (M) Bhd – which took over from Man Yau Holdings Bhd – opened trading at RM2 for a premium of 90 sen over its indicative price of RM1.10.  

Assuming Instangreen Corp Bhd's listing, property-based LBS Bina Group Bhd made a commendable 49 sen premium over its RM1 offer price.  

LBS Bina's fine start was in sharp contrast to KSU Holding Bhd. Also a property player, KSU – which had taken over the listing status of May Plastics Bhd – opened at RM1.50, or a discount of 50 sen to its offer price of RM2.  

Whether the rescuers will be in need of resuscitation themselves further down the line, only time will tell.  

But one company has proven to be a real knight in shining armour: A mid-2002 re-listing, Wah Seong Corp Bhd – which assumed Perdana Industri Holdings Bhd's listing status – made its debut at 75 sen for a 25 sen premium over its offer price of 50 sen.  

The company, which specialises in the coating of pipes used in the oil and gas industry, seems to have convinced investors its arsenal is sound. It closed yesterday at RM2.35. 

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