Tuesday, January 22, 2013
Hot Stock IRCB suffers limited fall despite bad news ----------Written by Shalini Kumar of theedgemalaysia.com
Hot Stock IRCB suffers limited fall despite bad news
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Wednesday, 23 January 2013 12:43
KUALA LUMPUR (Jan 23): INTEGRATED RUBBER CORPORATION (IRCB) Bhd, which announced yesterday that it is facing possible winding up procedures if it fails to pay back its RM16.89 million debts to Maybank Bhd, did not experience a huge sell-down.
This is despite the company saying in its statement: “There will be a significant impact on the financials and operations of IRCB Group should the winding up proceedings be taken upon the company.”
At 11.37 am, it fell by half a sen or 3.3% to 14.5 sen. Listed as one of the most active stocks in early trades, it hit a high of 15 sen and a low of 13.5 sen before settling at 14.5 sen, with 5.98 million shares done.
According to Goh Kay Chong, a senior dealer with SJ Securities, IRCB’s recent appointment of new director, Cheang Phoy Kean, could be the reason that the share price was not affected as badly as thought.
Cheang, 59, was appointed as managing director of IRCB, following the resignation of major shareholder Tan Keng Beng, after his family sold a 10.98% stake to Cheang via an off-market deal.
“The news about the recent change is probably the reason for shareholders to have some hope. It’s still a PN17 company, but this means new funds are coming in and so the company is going to be in a better position to face the situation,” he said.
Goh added, “Of course, the person (entering the company) should have already known the position of the company, so they probably have the funds to settle the debts.”
IRCB also announced earlier this month the appointments of Cheang’s son, Sean Kar Seng Cheang, as an executive director and Lim Boon Huat as a non-executive director.
Bursa Malaysia filings show that Cheang Phoy Kean emerged as a substantial shareholder in IRCB on Jan 4, following his acquisition of 65 million shares at 15 sen per share. The off-market deal was worth RM9.75 million.