KUALA LUMPUR (Oct 26): Small-cap counter Oversea Enterprise Bhd’s warrants saw an unusual surge in trading activity on Tuesday, with its trading volume rising to a record 160.48 million units.

The counter, which was the day’s second most actively traded on Bursa Malaysia, closed 0.5 sen or 20% higher at three sen.

The mother share was up one sen or 11.11% to close at 10 sen, giving Oversea Enterprise a market capitalisation of RM88.48 million. Some 1.25 million shares changed hands.

Earlier this month, Oversea Enterprise said Bursa Malaysia Securities has approved the quotation of up to 572.55 million warrants to be issued pursuant to the group’s proposed rights issue with warrants announced in July.

Bursa also approved the listing of up to 396.38 million new Oversea Enterprise shares to be issued pursuant to the group’s proposed private placement.

The proposals are subject to the approval of the group’s shareholders at an extraordinary general meeting on Nov 1.

Oversea Enterprise is involved in operating food service outlets, manufacturing and wholesale of confectionery, and trading in general and food products. It operates in Malaysia, Hong Kong and Taiwan.

The group’s share price has been steadily declining since it hit an all-time high to a pre-split price of 86 sen per share in August last year following the announcement of an unconditional mandatory takeover offer (MTO) at 30 sen per share by Anzo Holdings Bhd managing director Datuk Chai Woon Chet.

The MTO fell through as only 500 shares were received by the offeror, according to bourse filings in September 2020.

The group then went on to organise a slew of corporate exercises which included raising RM17.46 million by issuing 48.5 million new shares representing 20% of its previous share capital of 242.52 million shares via a private placement in February 2021.

Simultaneously, the group also organised a 1-for-3 share split which saw its share capital increased to 884.75 million shares as well as issuance of free warrants at a 2-for-1 ratio in March earlier this year.