KUALA LUMPUR (June 25): Serba Dinamik Holdings Bhd’s share price plunged below 50 sen to a fresh all-time low in Bursa Malaysia morning trade today following the engineering solutions provider’s announcement yesterday that KPMG PLT had resigned as the external auditor of the company in a widely-watched corporate dispute involving Serba Dinamik’s statutory audit matters.
Today, Serba Dinamik’s share price had fallen seven sen or 13.08% to a fresh all-time low of 46.5 sen before paring losses to 47.5 sen as at 11.29am, with a market capitalisation of about RM1.76 billion. The company has 3.71 billion issued shares.
The second most-actively traded counter on Bursa so far today registered a volume of some 177 million shares.
Yesterday, Serba Dinamik said in a Bursa filing that the company on Wednesday received a notice from KPMG on its resignation as the auditor of Serba Dinamik with immediate effect.
"KPMG in the notice stated that the suit filed by the company (Serba Dinamik) on June 22, 2021 (Tuesday) against them in regard to the ongoing statutory audit of the company for the financial period ending June 30, 2021 has compromised its ability to independently continue the audit engagement and discharge its professional duties as the auditor of the company.
"The company (Serba Dinamik) is currently identifying the new auditor to be engaged pursuant to Section 271(2)(b) of the Companies Act 2016 and will make an announcement to this effect immediately upon the finalisation of the appointment of the new auditor,” Serba Dinamik said.
News of Serba Dinamik also impacted share trade sentiment on its sister companies KPower Bhd and Sarawak Consolidated Industries Bhd (SCIB).
Serba Dinamik major shareholder Datuk Dr Mohd Abdul Karim Abdullah is also a major shareholder of KPower and SCIB.
At 11.43am, SCIB shares were traded 5.5 sen or 7.97% lower at 63.5 sen.
Meanwhile at 11.44am, KPower had fallen eight sen or 9.2% to 79 sen.
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