This follows a 23.5% decline yesterday, as the counter fell to its intraday low of RM2.57 in early trading with 4.66 million shares changing hands, double its two-month average daily volume of 2.11 million shares.
The counter managed to pare its losses to close 7.41% or 26 sen lower at RM3.25, valuing it at RM1.42 billion.
Over the past two days, the mobile and digital solutions provider’s shares have fallen almost 45%. It reached a peak closing price of RM4.65 on Nov 20 last year.
Executive shake-ups, MoU termination
The reason for the company’s share price nosedive remains a mystery. In a bourse filing earlier this month, it revealed chief financial officer Sivabalan Poobalasingam had left the company after his contract ended, which coincided with CEO Saifullah Akhtar’s resignation “to pursue personal interests”.
The company has so far not disclosed successors for the positions.
In August, the company announced the mutually agreed termination of a memorandum of understanding (MoU) signed with CGS-CIMB Securities in December 2021.
The MoU was aimed at collaboratively creating digital financial services to empower investors, aligning with Malaysia’s Capital Market Masterplan 3.
Interestingly in September, CGS-CIMB Securities became a substantial shareholder, acquiring a 7.58% stake through open market transactions.
The company’s largest shareholder is non-executive chairman Zaki Tun Azmi, who holds a 10.07% stake through Mypay Capital Sdn Bhd.
Other notable shareholders are executive director Sabri Ab Rahman, with a 10% stake, and non-executive director Ahmad Nazri Abdullah, holding a 5.06% stake.
In August, the company requested Bursa Securities for a one-year extension, until Aug 9, 2024, to submit its recovery plan.
This status came after the sale of its primary business, China-based textile unit Be Top Group Ltd, in August for RM70 million in cash. It is now positioning itself as a pure-play digital services provider.
As a consequence, its current operations now generate revenue that is less than 5% of its share capital. It currently operates government SMS gateway service ‘mySMS 15888’ and digital bail payment platform eJamin.
Pertama, formerly known as Sinotop Holdings Bhd, has suffered losses for five consecutive quarters, classifying it as an affected listed issuer.
For the first six months ended June 30, 2023 (6M FY2023), the company posted a net loss of RM6.27 million, compared to a net profit of RM5.05 million a year ago.