This article first appeared in Capital, The Edge Malaysia Weekly on November 13, 2023 - November 19, 2023

For the week of Oct 30 to Nov 3, notable shareholding changes at Bursa Malaysia-listed companies included those at FSBM Holdings Bhd, where Yeo Ann Seck ceased to be a substantial shareholder.

According to filings with Bursa Malaysia, Yeo disposed of 5.05 million shares in the IT services provider on the open market on Nov 1. Previously, Yeo held 28 million shares, or a 5.916% stake, pursuant to a rights issue.

The transacted price was not disclosed, but the counter closed at 35.5 sen on the open market on Nov 1. Its share price has risen 190% year to date (YTD) to close at 42.5 sen last Tuesday.

Yeo first emerged as a substantial shareholder in FSBM in August after acquiring 3.5 million shares via a direct business transaction. The transaction led to his holding 14 million shares, or 5.916% equity interest.

In December 2019, FSBM triggered the Practice Note 17 criteria after its auditors expressed a disclaimer of opinion on the company’s audited financial statements for the financial year ended June 30, 2018.

In April this year, FSBM’s regularisation plan, comprising a capital reduction exercise, share issuance and rights issue of shares with free warrants, was approved by Bursa Securities. The regularisation plan was completed on Sept 26 this year, following the listing and quotation of 60 million subscription shares, 236.66 million rights shares and 118.33 million warrants on the Main Market of Bursa Malaysia.

Over at Malaysian Genomics Resource Centre Bhd (MGRC), former beauty queen Datin Seri Jacqueline Ngu Hia Kee ceased to be a substantial shareholder in the genomics and biopharmaceutical company on Oct 30, after disposing of 201,200 shares on the open market. Post-transaction, she still holds a 4.98% stake. Ngu first emerged as a substantial shareholder of MGRC in July after acquiring a 5.1% stake from taking up seven million placement shares.

On Oct 26, MGRC received a notice from an independent non-executive director about his intention to apply for leave of court to commence derivative proceedings in the company’s name against individual directors and management of the company. The derivative action against individual directors and management is for alleged breaches of fiduciary duties in relation to transactions involving MGRC and its subsidiaries with external parties.

During the week in review, Mulpha International Bhd saw Hong Kong-based Many Merit Asia Ltd cease to be a substantial shareholder in the property and hospitality group after disposing of eight million shares, or a 2.57% stake, to Mulpha executive director and group executive chairman Lee Seng Huang for RM19.04 million, or 42 sen per share, on Nov 1. Prior to that, Many Merit held 23.24 million shares, or 7.28% equity interest, in Mulpha.

Post-acquisition, Lee’s direct stake in Mulpha increased to 20 million shares, or 6.43% equity interest. He also owns 200.42 million shares, or a 64.4% indirect stake, through Klang Enterprise Sdn Bhd.

The share price of Ranhill Utilities Bhd closed at its highest in two years at 88 sen last Tuesday, valuing the environment and energy group at RM1.13 billion. Ranhill shares surged to a 52-week high of 93 sen in intraday trading that day. The counter is up 93% YTD.

This came after news that YTL International Power Bhd had emerged as a substantial shareholder of Ranhill after acquiring 243.33 million shares, or an 18.87% stake, in Ranhill on Nov 1. The transacted price was not disclosed, but based on trading data on Bloomberg, it appeared that the transaction was carried out at 58 sen per share, translating into a purchase price of about RM140 million.

Shares in YTL Power have risen 220% YTD to settle at RM2.29 last Tuesday, giving it a market capitalisation of RM18.55 billion.

Meanwhile, at ECA Integrated Solution Bhd, Naza Corp Holdings Sdn Bhd emerged as a new substantial shareholder of the automated manufacturing solutions provider after it acquired 30 million shares, or 5.181% equity interest, via direct business transactions on Oct 27.

The week in review also saw ECA Integrated executive director and CEO Ooi Chin Siew disposing of 6.84 million shares, while its senior vice-president and head of design and development Kang Ewe Kheng disposed of 1.08 million shares, and executive director and chief operating officer Chua Lye Hock sold 12.09 million shares — all for a total of RM14.8 million, or 74 sen per share.

Post-transactions, Ooi, Kang and Chua are left with direct stakes of 20.016%, 11.66% and 21.256% respectively.

ECA Integrated’s share price has dropped 11.8% YTD to settle at 71 sen last Tuesday, valuing the company at RM411.1 million. Its shares closed at a 52-week high of RM1.08 on March 6, 2023. 

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