Ni Hsin flags possible link between treasury share sale and stock slump
The company sold five million treasury shares for RM2.38 million, but said it could not establish whether the transaction triggered unusual trading.
A treasury share disposal may have contributed to a steep price decline and heavier trading in Ni Hsin Group Bhd, the cookware manufacturer told Bursa Malaysia. Responding to an unusual market activity query, the company stopped short of drawing a definitive connection between the sale and the market movements.
The query came after the stock dropped to 15 sen, a fall of as much as 59.5 per cent. It subsequently closed at 26 sen, losing 11 sen, or 29.7 per cent, with turnover exceeding 66 million shares.
Ni Hsin received RM2.38 million from selling five million treasury shares on October 26, with individual sale prices between 47.5 sen and 48 sen. Its remaining treasury holding stood at 44.35 million shares.
After consulting directors, major shareholders and other relevant parties, the company said it knew of no rumours or reports explaining the activity. It also affirmed compliance with Main Market listing requirements, including obligations to disclose information immediately.
The company highlighted earlier proposals for an electric vehicle business and a one-for-two bonus issue comprising up to 312.65 million free warrants. Funds raised when the warrants are exercised are intended for capital expenditure and working capital.
The sell-off followed a record price of 51 sen on October 27 by three days. Despite a quarterly loss, the stock had climbed about sixfold since August 20, extending its rally after Ni Hsin outlined its electric vehicle plans on September 8.
