Insider Moves: Fast Energy Holdings Bhd, Barakah Offshore Petroleum Bhd, Golden Pharos Bhd, Jadi Imaging Bhd, Redtone Digital Bhd, MMAG Holdings Bhd

This article first appeared in Capital, The Edge Malaysia Weekly, on November 8, 2021 - November 14, 2021.
Insider Moves: Fast Energy Holdings Bhd, Barakah Offshore Petroleum Bhd, Golden Pharos Bhd, Jadi Imaging Bhd, Redtone Digital Bhd, MMAG Holdings Bhd
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Notable filings

BETWEEN Oct 25 and 29, notable shareholding changes in companies listed on Bursa Malaysia included those at Fast Energy Holdings Bhd. The Ace Market company, formerly known as Techfast Holdings Bhd, said in a stock exchange filing on Oct 25 that Kuah Choon Ching ceased to be a substantial shareholder after he sold 15.3 million shares on Oct 18 on the open market.

Kuah is the executive director of another listed company, Kanger International Bhd. His exit as a substantial shareholder comes ahead of Fast Energy’s announcement on Oct 28 that it had fixed its rights issue price at 12 sen each and the exercise price of its warrants at 15 sen each. It had, in April, proposed the rights issue as part of a series of corporate plans to raise funds. The exercise involves up to 909.21 million new shares on a one-for-one basis, and up to 454.6 million free detachable warrants on the basis of one warrant for every two rights shares subscribed.

Fast Energy is a petroleum trading and oil bunkering player that recently ventured into renewable energy to accelerate its growth. The stock fell by one sen to 21 sen on Oct 18 (the day Kuah sold his shares), and has since slipped further to 16 sen on Nov 2, giving the company a market capitalisation of RM64.81 million.

Over at Barakah Offshore Petroleum Bhd, its former group president and CEO Nik Hamdan Daud bought 27.26 million shares in the Practice Note 17 company on Oct 26 at seven sen each. The stock closed unchanged at nine sen that day.

It was his first time acquiring shares in the company since October 2019. Prior to this latest transaction, Nik Hamdan, who resigned in April 2019, had been disposing of shares on the open market via Kenanga Investment Bank Bhd to rectify a shortfall in his personal margin account position.

He now holds a 9.19% direct stake (92.14 million shares) in Barakah. The company has to submit a regularisation plan to Bursa Malaysia by Nov 17. On Oct 29, its external auditor Messrs HLB AAC PLT expressed a qualified opinion in Barakah’s audited financial statements for the year ended June 30, 2021, and flagged the existence of material uncertainty related to the latter’s ability to continue as a going concern.

Over at Golden Pharos Bhd, independent director Mohd Badaruddin Ismail disposed of his remaining 100,000 shares in the loss-making company on the open market on Oct 28, at 36 sen each. The stock closed at the same price that day, half a sen lower than the previous day. Terengganu Inc Sdn Bhd holds a 62.08% stake in the Main Board-listed wood products manufacturer.

Elsewhere, XOX (HK) Ltd, a wholly-owned subsidiary of mobile virtual network operator XOX Bhd, emerged as a shareholder of Jadi Imaging Bhd after buying 200 million shares, or a 19.01% stake, in the company on Oct 22. The RM46 million acquisition follows a sale and purchase agreement inked with LSI Holdings Sdn Bhd, the investment vehicle of Jadi executive chairman and CEO Liew Kim Seong and Ng Poh Imm.

XOX said it bought the stake in Jadi, which makes toners for laser printers, to enable it to build up a diversified investment portfolio.

Notable movements

Redtone Digital Bhd’s (RDB) share price rose to a more than six-year high of 69 sen on Oct 27 after announcing that its wholly-owned subsidiary REDtone Engineering & Network Services Sdn Bhd had been appointed as a universal service provider for the government’s Jendela Phase 1 (Part 2) project aimed at improving broadband coverage nationwide.

On the same day, Berjaya Philippines Inc ceased to be a substantial shareholder after it sold 8.5 million RDB shares on the open market. RDB is a subsidiary of tycoon Tan Sri Vincent Tan’s Berjaya Corp Bhd. RDB shares had since fallen slightly to 68 sen on Nov 2, on more active-than-usual volumes.

Over at Ace Market-listed MMAG Holdings Bhd, ChipSeng Heng Enterprise ceased to be a substantial shareholder after it disposed of 64 million shares via a direct business transaction on Oct 29. The buyer is yet to be known. The stock rose by one sen to 10.5 sen that day and was the most actively traded.

A day earlier, MMAG, which is in the IT industry, announced that its 80%-owned subsidiary M Jets International Sdn Bhd had obtained an air service licence and a ground handling licence from the Malaysian Aviation Commission.


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