KTC's headquarters in Kota Kinabalu
KUALA LUMPUR: Consumer packaged goods distributor Kim Teck Cheong Consolidated Bhd, which received an unusual market activity query from Bursa Malaysia just five weeks into its public listing, is not aware of the reason for the surge in its share price and volume recently.
The Sabah-based company, which made its stock market debut on Nov 25, told the regulator that except for what had been disclosed in its prospectus dated Oct 28, there was no corporate development that had not been previously announced that might account for the trading activity.
It said there was also no rumour or report that it was aware of concerning the business and affairs of the group that might have led to the sharp rise in its share price and trading volume.
Kim Teck Cheong, which issued 142 million new 10 sen shares at 15 sen each in conjunction with its listing, made its Ace Market debut at 30 sen per share and its price did not close the day above 32 sen until just this week.
On Monday, after the four-day holiday weekend, the price shot to 38 sen for a 22.6% gain, with 143.4 million shares traded. The following day, when Bursa issued the query, the counter shed 1 sen to close at 37 sen, with 49.4 million shares changing hands.
Based on its prospectus, the group has 18 distribution centres in Sabah, Labuan and Sarawak. It will use about three-quarters of the IPO’s gross proceeds to acquire or build more warehousing facilities in Sabah and Sarawak, and for working capital. The rest will be mainly for buying equipment for bakery-related production lines (it also has a relatively small business making cream rolls).
* See also Bursa Securities queries Kim Teck Cheong
