THE Securities Commission (SC), in a statement last week, reprimanded China Automobile Parts
Holdings Ltd (CAP), its current and former directors, and chief financial officers for various breaches of the securities laws.
According to the SC, pursuant to the company’s initial public offering (IPO), CAP had submitted to the SC and issued a prospectus dated Jan 11, 2013, that contained financial statements of its wholly-owned subsidiary that were false or misleading, due to overstatement of the subsidiary’s bank balances.
CAP was listed on the Main Market of Bursa Malaysia on Jan 30, 2013, at an IPO price of RM0.68 and with the listing of 600 million shares, giving it a market capitalisation of RM408mil. Its IPO was also oversubscribed by almost 2.4 times.
...