It was trading at the RM2.10 level on Sept 26 just prior to the steep downturn in its share price, which gathered pace in early October.
It hit an intraday low of 28 sen in morning trading today, valuing the company at RM122.6 million, an 86.7% drop from its market cap of RM919.8 million on Sept 25.
The puzzling thing about this is there appears to be no apparent reason for the precipitous drop in its share price.
Replying to Bursa Malaysia’s unusual market activity (UMA) query last week, the group said it was “unaware of the reasons for the recent decline in its stock price”.
The group had not lost any of its government contracts, and in fact had bagged a contract in July to provide public online digital identity onboarding services through MyDigital ID.
Executive director Sabri Ab Rahman had reaffirmed the company remains strong and well-positioned for growth after a strategic cost-cutting exercise and streamlined operations to ensure healthy cash flow.
He also said the company is expected to submit its regularisation plan earlier than the deadline of February 2025 and is in the midst of finalising key initiatives to boost its bottom line.
Pertama Digital operates the MyPay mobile application which consolidates e-services from government agencies into a single digital platform. It also operates the eJamin website which facilitates electronic payments for criminal court bail.
The company was incorporated in 1984 as Sinotop Holdings Bhd, and changed to its current name in 2020 as the group pivoted to mobile and digital solutions businesses.
Its largest shareholder is Perfect Hexagon Commodity & Investment Bank Ltd which is controlled by Sim Tze Shiong. Sabri holds a 10% stake through MyPay Capital Sdn Bhd in addition to a direct stake of 2.33%.
Its third-largest shareholder with an 11.44% stake is Nik Norzrul Thani Nik Hassan Thani, who is also the acting executive chairman of energy services firm T7 Global Bhd.
He had resigned as the company’s non-executive director last month along with executive director Mohd Reza Mohd Hatta, with both stating they wanted to “pursue their own interests”.