Nylex shares touch 18-month low as suspension looms

TheEdge Tue, Jan 30, 2024 01:08pm - 3 months View Original

KUALA LUMPUR (Jan 30): Shares of Nylex (M) Bhd fell as much as 10.5 sen or 34% in active trade on Tuesday morning, following news that the counter will be suspended from trading eight days from now on Feb 7.

The counter, which opened 3.5 sen lower than its previous close of 30.5 sen, was the third most active on Bursa Malaysia with 18.86 million shares traded — around 12 times its two-month average trading volume of 1.55 million shares .

At noon break, shares of the company, which completed the disposal of its plastics and chemicals business to Ancom Nylex Bhd in 2022, was trading at 23.5 sen, up from its 18-month low of 20.5 sen earlier, but still down seven sen or 22.95%.

Nylex’ impending trading suspension follows the business disposal, which resulted in it having no business and becoming an affected issuer who is required to submit a regularisation plan to the bourse.

As at end-September, Nylex had cash of RM12.61 million or seven sen per share based on its 179.79 million outstanding shares, and no borrowings. Retained losses stood at RM730,000.

It had earlier proposed to participate in a collaboration to build and operate a light rail transit system connected with the railway shuttle link currently being built from Singapore to Johor Bahru, with an integrated property development using the “transit-oriented development” concept in Johor Bahru.

The long-stop date for the agreement linked to the proposed project has been extended thrice, pushing it to end-July this year.

However, delays in the submission of the regularisation plan had resulted in the upcoming trading suspension, pending an appeal by the company to extend the submission deadline.

Nylex managing director Datuk Siew Ka Wei held a 0.57% direct stake in the company as at Dec 28, and another 42.36% interest via Ancom Nylex and Rhodemark Development Sdn Bhd.

In Ancom Nylex, Siew had a 13.9% direct stake and 3.4% indirect shareholding, and he sits on the board as executive vice chairman.

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