KUALA LUMPUR: Shares of loss-making Sedania Innovator Bhd, which have doubled in value this year, showed no sign of slowing down as they climbed to a three-year high in active morning trade.
The green-technology and fintech specialist opened 1.5 sen or 5.8 per cent higher at 27.5 sen before rallying as much as 17.3 per cent to 30.5 sen, a level last seen on Sept 23, 2022.
At press time, the counter had eased to 28.5 sen, still up 9.6 per cent or 2.5 sen, with 17.15 million shares traded.
Sedania shares had been treading water between nine sen and 11.5 sen from April 9 to Sept 26, before catching a strong tailwind on Sept 29. Since then, the stock has surged 18 sen or 171.4 per cent in less than a month.
Daily trading volumes have also been robust, particularly since Oct 3, when 24.47 million shares changed hands — the counter's busiest day in more than a year.
The stock began 2025 at 14.5 sen on Jan 2 and has since nearly doubled year-to-date, lifting Sedania's market capitalisation to RM101.9 million at its current price of 28.5 sen.
Sedania, a Bumiputera-owned ACE Market-listed firm, develops sustainable solutions across consumer goods, technology and energy.
Its portfolio includes eco-friendly personal and baby-care products under the Offspring and Tanamera brands, Syariah-compliant fintech platforms and sustainable-energy offerings that help organisations reduce carbon emissions.
On May 26, the company announced a proposed private placement exercise to finance a larger stake in its baby-care subsidiary Offspring Inc Sdn Bhd.
The rebound in Sedania's share price in subsequent months led the company to fix the final issue price above the illustrative level in its July circular.
By Oct 9, Sedania's share price had risen substantially to a five-day volume-weighted average price (VWAP) of about 16.34 sen.
The company then fixed the actual placement price at 14.8 sen per share, a 9.42 per cent discount to the prevailing VWAP, in line with Bursa Malaysia Securities Bhd's 10 per cent limit.
The final price marks a sharp increase from the illustrative issue price of 8.34 sen cited in Sedania's July 29, 2025 circular, which reflected market levels at that time.
Under the exercise, Sedania is issuing up to 73.07 million new shares or 20 per cent of its issued capital to raise about RM6.1 million.
The proceeds will be used to part-finance its RM17.4 million acquisition of an additional 29 per cent stake in Offspring, boosting its ownership to 80 per cent.
For the fourth quarter ended June 30, 2025, the company's net loss narrowed 69 per cent to RM1.51 million from RM4.83 million a year earlier, buoyed by stronger revenue and tighter cost controls.
Revenue jumped 56 per cent to RM21.68 million from RM13.94 million, driven by demand growth in its sustainable fast-moving consumer goods segment, aided by expanding online and international markets.
For the full year, Sedania's net loss fell 52.7 per cent to RM2.54 million from RM5.37 million in 2024, while revenue rose 51 per cent year-on-year to RM54.25 million.