Perak Transit Bhd (-ve)

TRADING of shares in Perak Transit Bhd (fundamental: 1.3/3, valuation: 2.4/3) triggered our momentum algorithm yesterday for the first time this year.

The counter closed half a sen or 2.44% higher at 21 sen, bringing it a market capitalisation of RM298.78 million. The counter was heavily traded yesterday and saw some 18.75 million shares changed hands, four times higher than its 200-day average trading volume of 4.31 million shares.

The company said it plans to issue RM300 million worth of Sukuk Murabahah to which United Overseas Bank (Malaysia) Bhd would become the sole subscriber. The proceeds would be used to refinance existing borrowings to finance the company’s capital expenditure and working capital for existing and new projects.

The unrated Sukuk Murabahah would be the first tranche of Islamic notes to be issued under its RM500 million 15-year Islamic Medium Term Notes (IMTN) programme, the company’s first IMTN programme.