The integrated electrical power technology company opened at 29.5 sen, unchanged from Friday, before investors started dumping their shares in earnest.
The counter managed to pare its losses at the close, down 3.5 sen or 11.86% at 26 sen, giving it a market capitalisation of RM253.68 million.
The trading volume jumped more than four times to 40.24 million shares from 8.57 million on Monday.
Year-to-date, Pestech’s shares have fallen 16.13%, and 29.73% over the past year.
The construction group’s agreement with Pestech for the subscription of 800 million shares at 15.5 sen per share marks IJM Corp’s foray into the energy transmission business, making them the largest shareholder in the group’s enlarged share capital.
Currently, Pestech chairman Lim Ah Hock owns a 32.51% stake whilst managing director-cum-CEO Paul Lim holds 19.32%.
At 15.5 sen per share, this represents a 47.46% discount from Pestech’s last traded date price of 29.5 sen, and a discount of 48.98% over the five-day volume weighted average market price of 30.38 sen up to July 21.
The transaction is expected to be completed in the final quarter of 2023.
In a filing yesterday, IJM Corp said this is a “synergistic opportunity” for it to acquire a strategic stake in a listed company with its core businesses of high voltage electrical transmission as well as rail electrification and signalling.
Pestech operates in Malaysia, Cambodia, the Philippines, Thailand, Papua New Guinea and the West African region.
According to its financial results filing on May 31, Pestech posted a net loss of RM60.58 million for the third quarter ended March 31, 2023 (Q3 FY2023) compared to RM6.52 million in the quarter a year ago.
For the quarter, group revenue plummeted almost 50% to RM97.26 million from RM192.63 million a year earlier.
Pestech is primarily engaged in providing project management, engineering, digitalisation, manufacturing, installation, testing and commissioning of electrical power infrastructure for both power grid systems and rail networks.
IJM Corp closed 3 sen or 2.04% higher at RM1.50, valuing the group at RM5.47 billion.