KUALA LUMPUR, May 10 — Serba Dinamik’s share price plunged by close to 70 per cent when trade resumed after a prolonged suspension yesterday as investors rushed to dump stocks of the troubled oil and gas firm accused of forging its revenue report.
The firm’s share price lost 68.6 per cent in value to close at just 11 sen after briefly hitting a record low of 10 sen, prompting pundits to caution investors and regulator Bursa Malaysia against buying the Bumiputera company’s stock, the Star Biz reported today.
Investors were advised against buying the share at least until the firm issues a “regularisation” plan, several market observers were quoted as saying.
“Investors must also look at whether there will be a white knight to save Serba Dinamik from its current condition,” said Vincent Lau, Rakuten Trade head of equity sales.
The risk tied to the stocks has prompted brokerages to demand cash upfront for the purchase of the firm’s shares, the paper reported.
Proprietary day trading and intraday short selling of Serba Dinamik’s shares were suspended yesterday.
Bursa Malaysia said in a special announcement the approved price of the firm’s share had dropped by more than 15 per cent, which triggered the suspension.
PDT and IDSS short selling would resume today.
In a bourse filing on May 5, Serba Dinamik Holdings Bhd said it is looking to draft a regularisation plan with approximately eight months for submission to Bursa Securities for approval.
The company was declared a PN17 company in January after its external auditor Nexia SSY PLT expressed a disclaimer of opinion over its audited financial statements for the 18-month financial period ended June 30, 2021.
Nexia had said that a number of factors had constrained its completion of the group’s audit, including the non-availability of a report on an independent review conducted by Ernst & Young Consulting Sdn Bhd, The Edge reported.
Related Articles AG must explain why Serba Dinamik case resolved with compound, says Gobind Malaysian Bar urges AGC to explain refusal to prosecute Serba Dinamik, says fines alone a ‘dangerous precedent’ Serba Dinamik to file regularisation plan in eight months