Short selling of E&O suspended after breaching price limit

Affin Hwang Capital Research said the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019.

KUALA LUMPUR: The short selling of property company Eastern & Oriental was suspended in late Tuesday morning session after its share price fell more than 15 sen or 15%.

At 11.45am, it was down 20 sen to 89 sen in active trade. The short-selling activities will only resume on Wednesday.

The company had asked investors for RM550.3mil to fund its property development projects.

It aims to raise as much as RM550.3mil via a private placement and renounceable rights issue to fund its property development projects.

The proposed private placement will involve the issuance of up to 10% of E&O’s issued share capital of 1.31 billion shares.

The renounceable rights issue will include free detachable warrants on an issue price and basis to be determined later.

Affin Hwang Capital Research said it believes the overhang from the equity issuance will dampen sentiment on the stock in the short to medium term. 

“But the long-term prospects for E&O remains good with the scheduled completion of 253-acre Seri Tanjung Pinang Phase 2A (STP2A) by September 2019. Maintain Buy,” it said.